The market intelligence platform IntoTheBlock has revealed how the largest of Bitcoin holders have been the ones applying selling pressure amid the price decline.
Bitcoin Mega Whales Have Been Reducing Their Supply Recently
In a new post on X, IntoTheBlock has discussed the latest trend in the Bitcoin supply held by the whales. The ‘whales‘ broadly refer to the entities who own more than 1,000 tokens of the cryptocurrency.
At the current exchange rate, this amount converts to a whopping $88.9 million, so the only investors who would qualify for the cohort would be the big-money ones.
In the context of the current topic, the holders of focus aren’t just any ordinary whales, but in fact the largest among them: those carrying more than 10,000 BTC ($889 million) in their balance. This group may be termed as the ‘mega whales.’
Now, here is the chart shared by the analytics firm that shows the trend in the holdings of the Bitcoin mega whales over the past week:
As displayed in the above graph, the Bitcoin mega whales sold some of their supply during the price crash. More interesting, though, is the detail that these investors already began their selloff a few days back, a potential indication that they saw the price plunge coming.
According to IntoTheBlock, this cohort was the primary seller in this window. In fact, the analytics firm has pointed out that the rest of the groups have shown combined accumulation at the same time, meaning the smaller entities are looking at the plummet as an opportunity to buy.
In total, the mega whales have sold 25,740 BTC (almost $2.3 billion) over the last seven days. The behavior of the cohort could now be to keep an eye on in the coming days, as with the rest of the market buying, what these humongous investors do could tip the balance one way or the other for Bitcoin.
Holder balance is just one way to classify BTC cohorts. Another is through exchanges, as different platforms can host a different demographic of investors. Two exchanges in particular are generally of relevance in this type of analysis: Coinbase and Binance.
Coinbase is mainly used by entities from the US, especially large institutional traders, while Binance serves global investors. An indicator that can be used for tracking the difference in behavior between the two user bases is the Coinbase Premium Index.
This metric measures the percentage difference between the Bitcoin price listed on Coinbase (USD pair) and that on Binance (USDT pair). As CryptoQuant founder and CEO Ki Young Ju pointed out in an X post, the Coinbase Premium Index has been negative recently.
This trend, alongside the fact that Coinbase’s spot volume dominance has shot up recently (left chart), would suggest the American whales have been the main drivers during the crash.
BTC Price
Bitcoin approached the $86,000 mark during yesterday’s dip, but the coin has since seen a rebound as its price is now trading around $88,700.
Featured image from Dall-E, CryptoQuant.com, IntoTheBlock.com, chart from TradingView.com
Keshav Verma
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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