Bitcoin Whales and Sharks Trigger Active Sell-Off Amid Price Dip

The market continues to face strong selling pressure, particularly from major whales.

Bitcoin Whales And Sharks Trigger Active Sell Off Amid Price Dip_65d5d0e4156de.webp

As the flagship cryptocurrency’s value descends below the $40,000 threshold during a broader sell-off across the cryptocurrency market, recent data reveals a noteworthy trend in Bitcoin inflows to centralized exchanges, indicating significant divestment by major investors.

According to insights from CryptoQuant, an on-chain analytics firm, these inflows signify “clear indications of active selling pressure from both sharks and whales in the market.” Here, sharks are characterized as entities holding between 100 and 1,000 BTC, while whales are those with holdings exceeding 1,000 BTC.

The analysis highlights a shift in the composition of sellers within the exchange markets after Bitcoin’s price reached $49,000. Previously dominated by retail investors, analogous to shrimps (those holding less than 1 Bitcoin), the current landscape witnesses a transition to larger market players. These formidable holders are currently orchestrating profit-taking strategies within the exchanges.

1706242532

The price of the flagship cryptocurrency hit a high above the $49,000 mark earlier this year amid the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States, with investors betting on signicant inflows for these funds as they allow both retail and institutional investors to gain exposure to the cryptocurrency without managing the private keys to a wallet.

Related: How Much Bitcoin is Tesla Holding?

The firm added that these holders, who have a higher ratio than short-term Bitcoin holders, have accumulated a lot of Bitcoin during the 2023 bull run, according to temporal data. The recent crypto market sell-off notable comes at a time in which a recent JPMorgan research report cast doubt on the impact of spot Bitcoin ETFs on the market.

The team of analysts, headed by Kenneth Worthington, anticipate that the spot Bitcoin ETFs, which have been a driving force in reviving the ecosystem, may not meet market expectations. Furthermore, the analysts voiced their concern that any letdown in ETF fund flows might dampen the excitement that has fueled the surge in cryptocurrency.

5.0/5

(100 votes)

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

Azcnews Bitcoin Drops To $64,000 Amid Us Stock Market Plunge

News | Bitcoin | Editor Choice

Bitcoin Drops to $64,000 Amid U.S. Stock Market Plunge

Bitcoin has corrected back below $64,000 as the U.S. stock market experiences a sharp decline.

Azcnews Bitcoin Surpasses $66,000 For The First Time In Weeks

News | Bitcoin | Editor Choice

Bitcoin Surpasses $66,000 for the First Time in Weeks

On July 17, Bitcoin surpassed $66,000. Recent gains have been driven by whales and institutional investors.

Azcnews Bitcoin Surpasses $65,000 Amid Strong Buying Sentiment

News | Bitcoin | Editor Choice

Bitcoin Surpasses $65,000 Amid Strong Buying Sentiment

The net position of long-term holders has turned positive. BTC has converted its previous resistance level into support.

Cryptocurrency Community Speculates On China Lifting Bitcoin Ban

Bitcoin | Editor Choice

Cryptocurrency Community Speculates on China “Lifting” Bitcoin Ban

Despite the rumors on social media about the possibility of China lifting the ban on Bitcoin, the cryptocurrency community remains skeptical about this possibility.

Azcnews Bitcoin Surges To $64,000 Alongside Microstrategy And Coinbase Stocks

News | Bitcoin | Editor Choice

Bitcoin Surges to $64,000 Alongside MicroStrategy and Coinbase Stocks

Bitcoin has risen to $64,000, its highest price in nearly two weeks, alongside strong gains in cryptocurrency-related stocks such as MicroStrategy and Coinbase.