These whales dropped their holdings but never purchased them back, but here’s why it might be bullish
Bitcoin hitting an all-time high in November was a moment of euphoria as the entire market braced for the first cryptocurrency to hit $100,000 in a week, but the biggest crypto holders didn’t think so.
Whales dropping their holdings
According to data from Glassnode, the number of wallets holding 1,000 or more BTC on their addresses has rapidly dropped after the first cryptocurrency almost reached $70,000. Such a large drop in the number of addresses confirms that whales dropped the majority of their holdings on retail traders back at ATH.
Previously, whales took massive profits in the summer when the price of Bitcoin dipped below $30,000. But at the same time, due to a sudden influx of funds from private and institutional investors, the market was able to quickly reverse and reach new highs.
Whales buying back
Approximately 500 addresses that were previously holding more than 1,000 BTC sold did not buy back any of their coins during the current downtrend on the market. This fact confirms that there is still plenty of Bitcoin supply in the hands of exchanges rather than whales or large investors.
Once the accumulation trend appears in the market and the number of large addresses begins to increase, the first cryptocurrency will most likely enter an uptrend and reach new highs, rather than when the whales remain stagnant and prefer to retain their purchasing power.
At press time, Bitcoin is trading at $43,744 after facing a sudden spike following the market’s exit from an oversold condition. Altcoins are also facing a price increase after the fresh money flowed into the market.
