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Bitcoin Whale Activity Declining – Why A Turnaround Is Important

According to the latest on-chain revelation, the Bitcoin network has been experiencing a steady decline in high-value transactions over the last few weeks. This sluggish activity has been mirrored by the price of the premier cryptocurrency, which has struggled to break out of consolidation throughout the month of April.

In the past week, the Bitcoin price struggled to hold above $67,000 despite touching the level multiple times. The price of BTC has since been in a tumble and is down by more than 2% in the last seven days, according to data from CoinGecko.

Interestingly, the recent on-chain data suggests that this underwhelming price performance might persist for the market leader unless there is a turnaround, especially in terms of network activity.

Can Whale Activity Push BTC Price Beyond $73,000?

Prominent crypto analyst Ali Martinez took to the X platform to reveal that the Bitcoin whale activity has been declining steadily in the past six weeks. This revelation is based on Santiment’s Whale Transaction Count metric, which tracks the number of BTC transactions worth more than $100,000 and $1 million.

Whales refer to entities or individuals that own substantial amounts of a particular cryptocurrency (Bitcoin, in this case). As such, they hold significant influence over market dynamics due to their capacity to execute large transactions, which can trigger speculation and potential price shifts.

Martinez highlighted in his post that there has been a noticeable decline in Bitcoin whale activity since March 14, the same day the premier cryptocurrency hit a new all-time high price of $73,737. This dip in activity has coincided with the recent underperformance of Bitcoin’s price.

However, the crypto analyst mentioned that an increase in high-value transactions could breathe life into the price of BTC. This is based on the reasoning that a surge in network activity could imply high demand for Bitcoin, leading to elevated prices. 

As shown in the chart below, the peak of the whale transaction count correlates with the new record-high price of BTC.

Bitcoin

Active Bitcoin Wallets On The Rise: Santiment

An interesting piece of on-chain data that may suggest increasing demand for Bitcoin and a bullish future for its price has come to light.  According to Santiment, the number of active Bitcoin wallets is increasing rapidly despite the choppy state of the market.

Active Bitcoin wallets refer to the total number of unique addresses holding BTC. Santiment data shows that the number of these “non-empty BTC wallets” has climbed by more than 2.5% in the last three months.

As of this writing, Bitcoin trades just above $64,000, reflecting a 1.6% price increase in the past day.

Bitcoin

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Fifth Largest Bitcoin Whale Moves $6 Billion In BTC, Here’s The Destination

The crypto community’s attention has been drawn to a Bitcoin whale who recently moved a huge portion of their BTC holdings across different wallets. This action has sparked the curiosity of those in the community about the reason for these transactions. 

Bitcoin Whale Moves $6 Billion In BTC

Blockchain analysis platform Arkham Intelligence first brought this occurrence to the community’s attention when it mentioned in an X (formerly Twitter) post that the Bitcoin address (37XuVSE) had moved over $6 billion in BTC to three new addresses. 

As part of the transactions, $5.03 billion worth of BTC was sent to one of these addresses (bc1q8yj), while the two other addresses (bc1q6m5 and bc1q592) received $561.46 million and $488.40 million worth of BTC respectively. Arkham added that one of the wallets (bc1q592) has since then proceeded to transfer the received funds to another wallet. 

Notably, the wallet which moved $6 billion in BTC was before now the fifth richest Bitcoin address having held over 94,500 BTC in its wallet. As of now, it still holds 1.31 BTC in the wallet in question. Interestingly, before now, this address was dormant as it had not moved any of this BTC which it received since 2019. 

Transactions of such magnitude are always sure to cause a stir in the crypto community, considering the impact such whales can have on the market. Usually, a move like this can cause community members to speculate that the whale may be looking to offload their tokens and take profits. However, the fact that these transactions weren’t made to exchange-linked wallets has quelled such speculations. 

Another BTC Whale On The Rise

Bitcoinist recently reported on BlackRock’s Bitcoin wallet, which has continued to accumulate Bitcoin at an astonishing rate due to the impressive demand for its iShares Bitcoin Trust (IBIT). Despite just launching this ETF in mid-January 2024, BlackRock now holds 243,126 BTC for the fund. 

BlackRock’s BTC holdings has seen it rise to becoming one of the largest corporate BTC holders, only behind centralized exchanges Binance, Bitfinex, and Coinbase and fellow Bitcoin ETF issuer Grayscale. A sustained demand for the IBIT ETF could however see BlackRock surpass these entities at some point. 

That is also something that could reflect positively on Bitcoin’s price seeing as how instituitional demand for the flagship crypto has helped propel it to new highs. 

At the time of writing, Bitcoin is trading at around $70,500, up in the last 24 hours according to data from CoinMarketCap.

Bitcoin price chart from Tradingview.com

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Bitcoin Whales Steer Clear Of Significant Short Positions, Show Confidence In Price Surge

Bitcoin traders are exhibiting cautious optimism as they refrain from “substantial short positions,” expecting continued price surges, according to analysts from Bitfinex this week’s Alpha report.

Despite Bitcoin’s notable surge that brought the asset to trade as high as above $52,000 for the first time since 2021, analysts note a decrease in the short-squeeze ratio compared to previous years. The reason behind this declining short-squeeze ratio is revealed in the report.

BTC Short Squeeze Ratio vs price

Whales Shun Short Positions Amid Bullish Sentiment

Analysts at Bitfinex Alpha report that large whale investors are refraining from “substantial short positions” due to their belief that prices will only continue to increase further.

The current market conditions are characterized by “tightening supply and increasing demand,” further supporting the bullish sentiment among traders.

According to the Bitfinex Alpha report, the behavior of Bitcoin holders suggests the emergence of early bull-market conditions. This is evidenced by a reduction in the volume of long-term holder supply experiencing losses, a trend that correlates with the ongoing rise in the asset’s price.

This observation suggests a positive outlook for Bitcoin’s price trajectory in the near term. The report noted:

Currently, less than 6% of the aggregate long-term holder supply by individual entities are held at a loss. Historically, similar instances where the long-term holder cohort held a comparable volume of Bitcoin in loss have been indicative of early bull market conditions.

Bitcoin Trajectory And Investor Sentiment

In the past 24 hours, Bitcoin has experienced a slight retracement of nearly 2%, following a week-long uptrend that propelled its price to trade above $52,000 for the first time since 2021. Despite this retrace, investors remain optimistic, with ongoing asset accumulation amid bullish predictions from analysts and experts.

Renowned financial guru Robert Kiyosaki recently made headlines with his bold prediction that Bitcoin will reach $100,000 by June 2024, further fueling optimism in the crypto community.

Moreover, recent whale activity in the Bitcoin market has caught the attention of analysts and investors alike. Crypto analyst Ali Martinez recently revealed that a specific class of Bitcoin investors, holding between 1,000 and 10,000 BTC, has accumulated the digital asset in recent weeks.

Data from on-chain analytics firm Santiment shows that whales in this category have added over 140,000 coins to their holdings in the last three weeks, equivalent to a substantial $6.16 billion.

This accumulation trend among whales reflects confidence in Bitcoin’s long-term potential and is a positive indicator for its future price trajectory.

Featured image from Unsplash, Chart from TradingView

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16,000 Bitcoin Dormant Since 5+ Years Suddenly Moves, What’s Going On?

On-chain data shows 16,000 BTC, which have been dormant for 5-7 years, have finally shown some movement on the Bitcoin blockchain.

5-7 Years Old Bitcoin Age Band Has Made A Large Move

As pointed out by an analyst in a post on X, a large stack of dormant coins has moved across the network today. The relevant on-chain indicator here is the “Spent Output Age Bands” (SOAB), which keeps track of the movements of the various Age Bands on the blockchain.

“Age Bands” here refer to groups of coins divided based on their total holding time. For example, the 1-month to 3-month Age Band would include all coins that have been dormant (that is, staying inside the same address) since between one and three months ago.

If a large number of coins belonging to this holding time range would transfer on the blockchain, then the SOAB for this particular Age Band would register a spike. In the context of the current discussion, the 5-7 years Age Band is of interest.

The chart below shows the recent SOAB data for this Age Band specifically:

Bitcoin Spent Output Age Bands

As displayed in the above graph, a large amount of coins aged between 5-7years old appear to have just been moved on the network as the corresponding Age Band has registered a spike.

This Age Band is a segment of the wider and “long-term holder” (LTH) group, which includes investors who have been holding onto their coins since at least 155 days ago.

Statistically, the longer a holder keeps their coins dormant, the less likely they become to sell at any point. As such, the LTHs are generally considered to be more resolute than the rest of the market (the “short-term holders“).

Since the 5-7 years Age Band would include coins that are old even in LTH terms, their owners would have to be diamond hands among diamond hands. Due to this reason, it can be something notable when such ancient entities finally decide to break their silence.

Related Reading: Cardano (ADA) To Break $8 In Bull Run: Analyst Predicts Timeline

During the latest SOAB spike, these investors have moved a massive stack of 16,000 BTC (around $837.8 million at the current exchange rate). Now, what implications this move may have on the market depends on what these investors intend to achieve with it.

A dive deeper into on-chain data suggests the move was an outflow from the cryptocurrency exchange Coinbase, as the chart below shows:

Bitcoin Coinbase Outflow

The fact that it is an outflow may be a positive sign for Bitcoin, as it means that selling may not have been the goal here. Rather, the move implies the whale entity behind it may be moving towards self-custody to HODL further, or a large buyer like an ETF is gobbling this BTC up.

BTC Price

Bitcoin had made a visit down to $50,600 during the weekend, but the cryptocurrency already appears to have bounced back as its price is now floating around the $52,400 level.

Bitcoin Price Chart

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Bitcoin Buzz: Accumulation Trend Peaks At A 3-Year High – What’s Driving The Surge?

According to data shared by renowned crypto analyst Ali, Bitcoin has recently witnessed a significant development in its investment dynamics, marking a notable shift in the crypto market.

In a post on X published earlier today, Ali disclosed that Bitcoin is experiencing a substantial accumulation streak, which has not been seen in nearly three years.

According to the analyst, this surge in the Accumulation Trend Score indicates the growing confidence among larger entities in the cryptocurrency market.

Ali’s shared data further reveals that the Accumulation Trend Score for Bitcoin has consistently hovered near the peak level of 1 over the past four months. This sustained high score signals an active and ongoing accumulation by big investors.

A Surge In Large-Scale BTC Holdings

Further complimenting this near 3-year accumulation trend streak, Ali’s recent data revealed that the Bitcoin market has welcomed approximately 67 new “whales.” These entities, each holding over 1,000 BTC, represent a 4.50% increase in this category of investors within two weeks.

This increase in whale activity coincided with a period where Bitcoin experienced a notable dip, falling below the critical $39,000 threshold. Ali noted: “While some shivered with fear during the recent price correction, Bitcoin whales were accumulating more BTC.”

This downturn was primarily attributed to a significant outflow from Grayscale, amounting to over $5 billion since the Bitcoin Spot ETF was approved by the US Securities and Exchange Commission (SEC).

However, as this outflow has cooled off, Bitcoin has shown signs of recovery, trading above the $42,500 mark and registering a 6.1% increase in the past week.

Bitcoin (BTC) price chart on TradingView.com

Bitcoin Poised For 40% Surge?

Shifting the focus to the broader financial landscape, Arthur Hayes, founder of BitMEX, has offered an analysis of current economic conditions and their potential impact on Bitcoin. His commentary is particularly relevant in light of recent challenges faced by New York Community Bancorp (NYCB) and the banking sector.

The bank’s significant stock decline, driven by unexpected losses and a substantial increase in loan loss reserves, has raised concerns about the stability and exposure of US regional banks, especially in the real estate sector.

Hayes’s remarks point to a possible near-future scenario where the Federal Reserve might have to intervene by reinstating the Bank Term Funding Program (BTFP) or similar measures to stabilize the banking sector.

He parallels the current situation and the March 2023 banking crisis, suggesting that similar market turbulence could lead to a brief dip in Bitcoin’s value, followed by a significant rally.

Hayes postulates that such developments could see Bitcoin, often regarded as a digital gold or safe-haven asset, experience a surge in value similar to the 40% increase witnessed during the previous banking crisis.

Featured image from Unsplash, Chart from TradingView

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Mystery Bitcoin Whale Who Bought 10,000 BTC Has Been Exposed

The attention of the crypto community has been drawn to a particular whale that has been accumulating Bitcoin for some time now. The magnitude of the whale’s holdings has left many wondering who it might be and the reason for the accumulation. 

Bitcoin Whale Accumulates Over 10,000 BTC In November

In a post on his X (formerly Twitter) platform, popular Bitcoin investor Lark Davis revealed details about the “mystery whale” who had been accumulating Bitcoin. Interestingly, the wallet (bc1qch) had accumulated over 10,000 BTC in November. On-chain data also showed that the wallet currently holds over 12,000 BTC ($460 million). 

Following this revelation, many began to speculate on who the owner of the wallet was and the reason for such accumulation. Lark suggested that it could be institutional investors looking to “front-run the Spot Bitcoin ETF approval.” Some were of the opinion that it could be one of the Spot Bitcoin ETF filers who were preparing ahead of a possible approval.  

Irrespective of who the owner was, many felt it was a good sign of things to come for the crypto market. That is because the accumulation showed that there was still a huge demand for the flagship cryptocurrency. One could have also inferred that the whale was possibly loading up their bags ahead of the bull run which some project is around the corner. 

The bullish sentiment was also ignited by the fact that the wallet had not sent out any BTC since it began accumulation at the end of October.  That instantly suggests that the whale was in it for the long term rather than looking to make quick profits. 

Bitcoin price chart from Tradingview.com

BitMEX The Mystery Whale

The mystery around who the whale might be seems to have been resolved. The wallet is reported to belong to the crypto exchange BitMEX. The exchange is also said to have been simply moving its Bitcoin holdings to this new wallet, which forms part of the exchange’s cold wallet.  

This is a real possibility, considering that some of the inflows into the wallet came from a particular BitMEX wallet (bc1qm). ZachXBT, a prominent blockchain investigator, also stated that the wallet belongs to the crypto exchange. He referred to an X post, which noted that the wallet address in question was included in BitMEX’s proof-of-reserves. 

If so, then there isn’t so much meaning to read into the accumulation. It has become standard procedure for these exchanges to have proof of reserves as evidence of enough liquidity on their platform. These reserves are usually proportional to the users’ assets on the exchange. 

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Bitcoin Alert: $137 Million Moved By Long-Sleeping Whale, Market Braces For Impact

Recently, the crypto community witnessed a notable event as a dormant Bitcoin whale, inactive for nearly four years, returned to the market.

According to data from the crypto analytics platform Lookonchain, this enigmatic entity transferred 3,623 BTC, worth roughly $136.94 million, to two newly created wallets.

Market Speculations And Potential Impact

This mysterious investor initially accumulated their Bitcoin holdings at an average cost of $6,889 per unit from October 25, 2018, to December 31, 2019. Initially, the total investment stood at approximately $24.96 million.

However, at present market conditions, this investment has grown significantly and is now estimated to yield around $112 million in profits.

The transaction’s significance extends beyond its sheer magnitude. It is particularly noteworthy for its timing, aligning with Bitcoin’s recent surge to a peak price not seen since May of the previous year, reaching around $38,400 per Bitcoin.

The sudden activity of this substantial Bitcoin holder has sparked speculation and discussions within the crypto community. On the X platform, a user pointed out the timing of the whale’s movement as it coincides with Bitcoin’s recent rally to a significant high.

This observation has led to conjectures about the whale’s potential insider knowledge or strategic market insights, especially considering the substantial profit they are currently sitting on.

Notably, the actions of large-scale holders, often dubbed ‘whales,’ can exert considerable influence on the crypto market. A transaction of this magnitude could signal various strategic moves, ranging from portfolio restructuring to preparing for a market exit.

Such movements are closely monitored as they can provide insights into market sentiment and potential trends.

A Closer Look At The Bitcoin Whale’s Strategy

Delving deeper into the whale’s investment strategy reveals a calculated approach to Bitcoin accumulation. The purchase of Bitcoin at an average cost of $6,889 per BTC during the 2018-2019 period indicates a strategic entry during a time when the market was relatively bearish.

The subsequent hold for four years through various market cycles underscores a long-term investment mindset, contrasting with the short-term trading strategies often seen in the crypto space.

The recent awakening of this whale and the transfer of a significant portion of their holdings to new wallets might indicate a shift in strategy. While it’s speculative to predict the whale’s next move, this could involve cashing out on some of their investments or redistributing assets for diversification.

It’s also plausible that the whale is positioning for new investment opportunities within the crypto space, potentially in sectors such as decentralized finance (DeFi) or non-fungible tokens (NFTs).

Regardless, Bitcoin is currently in a downtrend following its climb above $38,000 yesterday. The asset now trades at $37,704, at the time of writing, down by 0.4%.

Bitcoin (BTC) price chart on Tradingview

Featured image from Unsplash, Chart from TradingView

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Bitcoin Price At Risk? Whale Transfers $137 Million In BTC After 3-Year Dormancy

Whales are some of the most relevant entities in the Bitcoin market because of their potential influence on the Bitcoin price through large-volume transactions. Investors and traders often look out for whale transactions, which can trigger a domino effect on the market.

In one of such developments, recent on-chain data revealed that a particular whale has woken up from a three-year slumber, moving their BTC for the first time since 2020.

Whale Becomes Active For The First Time In Three Years

According to data from blockchain analytics platform Arkham Intelligence, a particular Bitcoin whale became active after years of dormancy and transferred out 5,000 BTC (worth around $137 million) on Saturday, October 7. 

The whale address initially received the 5,000 BTC from “Poolin mining pool” on June 23, 2020. At the time, the Bitcoin price was around $9,700, putting the total value of the transaction at approximately $48.5 million.

The Bitcoin price has experienced significant growth since 2020, with one BTC trading for $27,903 as of this writing. Consequently, the whale address’ holdings had swelled to approximately $137 million when all 5,000 BTC was moved on Saturday.

On-chain data shows that this whale split and transferred the 5,000 to two separate addresses. Some 4,000 BTC were transferred to one address, and 1,000 BTC were sent to the other address, both of which are new and unmarked.

A Threat To Bitcoin Price?

This latest whale action seems to be provoking a sense of caution in the Bitcoin market. This is no surprise, considering that the movement of a large BTC amount (especially a sell-off) often sparks interest or fear in other investors, leading to momentary price fluctuations. 

Nevertheless, it is worth noting that the reason behind this whale transfer is currently not known. It remains to be seen whether the owner wants to sell or just move their assets into another wallet.

If the whale intends to sell off all their BTC holdings, then this latest action could potentially threaten the Bitcoin price. Large-scale selling could negatively impact Bitcoin’s value, as it often puts downward pressure on the cryptocurrency and could trigger a temporary price dip.

It may be worth mentioning that the Bitcoin price has not experienced any significant or abrupt changes in the past 24 hours. According to CoinGecko data, the value of BTC has dipped by 0.1% in the past day.

Bitcoin has made a relatively healthy start to October, with the premier cryptocurrency recording a 3.3% price gain since the start of the month. The BTC price has been moving mostly sideways in the past few days as it looks to break through the $28,000 mark.

Bitcoin Price

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Bearish Signal? Bitcoin Whale Wakes Up From 6-Year Slumber And Transfers $56 Million

Movement of dormant Bitcoin addresses has been sporadic this year, with most causing a stir and rising interest amongst the Bitcoin community. In the latest record of whale transactions this year, on-chain data has shown that a set of dormant Bitcoin from 2017 has moved for the first time in six years. 

Peckshield, a blockchain security and data analytics firm, revealed in a tweet that the previously inactive address, which held 2,100 BTC has just become active, with its assets now transferred to a different address. 

Whale Wakes Up From Slumber, Moves $56 Million

According to data from BitInfoCharts, this Bitcoin address initially had its first Bitcoin transaction of 2099.99 BTC on October 10, 2019. At the time, Bitcoin was trading at $5,618, putting the total value of the transaction at $11.79 million. Bitcoin has grown substantially since then, with a unit now going for $27,140 at the time of writing.

The cumulative balance in the wallet address has experienced a significant increase to $56.3 million at the point of transfer, indicating a substantial profit of $44.5 million. However, on-chain data shows that the worth of these holdings reached $121 million during the crypto market bull run in 2021. 

Bearish Signal?

The whale transfer in question appears to have added an air of mystery and excitement to an otherwise dull week of Bitcoin. When a large amount of BTC suddenly moves, it can spark interest from other traders, causing temporary price fluctuations, especially when they are sold off. 

Bitcoin price chart from Tradingview.com (BTC whale)

It is currently unclear the motive behind the transfer of these coins, as the owner could be gearing up for a selloff or transfer into a safer wallet. This move could be bearish, though, if they decided to sell all of their holdings. 

It could introduce a fair amount of selling pressure on Bitcoin and cause the price to drop, at least temporarily. However, on-chain data shows that the 2,100 BTC are still held in a private address, “1LGnp”, showing they are probably still in self-custody. 

Bitcoin Worth $24.88M Resurfaces from 2012 Wallets

In another series of transactions this week, a set of dormant Bitcoin from 2012 has moved for the first time in 11 years. The Bitcoin cache, which total $24.88 million in today’s BTC price, was moved in five transactions, making it unclear if they belonged to one person. However, findings from on-chain data show a higher chance of them belonging to one entity due to their acquisition dates. 

Similarly, one of the earliest Bitcoin wallets holding 1,005 BTC was awakened last month. These cryptocurrencies were acquired for less than $1 each in 2010, during the first year of Bitcoin’s creation.

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Dormant Bitcoin Wallet With 1,005 BTC Awakens, Sell Pressure Incoming?

An anonymous Bitcoin wallet holding 1,005 BTC recently woke up after 13 years of dormancy. This dormant wallet was one of the earliest Bitcoin wallets created, having received its first 1,000 BTC transaction in November 2010, just a little over a year after the Bitcoin mainnet launched. 

During this time of Bitcoin’s humble beginnings, its price never even broke above $0.20. However, the recent reactivation of this wallet has sparked speculation of whether a massive sell-off of the coins could be incoming.

Cold Storage Just Turned Hot

Reactivation of old and dormant wallets containing massive amounts like this often sparks speculation about who controls them, especially as dormant wallets get reactivated from time to time. 

2023, in particular, has witnessed a high number of these Bitcoin wallets coming back to life. According to the Spent Output Age Bands (SOAB) indicator, the number of bitcoins that are between 7 and 10 years old has demonstrated an exceptionally significant increase in the most recent months. 

Using the SOAB indicator, investors are able to determine the age of Bitcoins currently available on the market as the lifespan of bitcoins is broken down into distinct ages. 

Kirill Kretov, a developer who specializes in the creation of automated trading programs, believes that the reactivation may have been carried out by the same entity.

Considering its age, some Bitcoin investors also suggest this wallet might belong to Satoshi Nakamoto himself. However, this case would be very unlikely, as nobody knows who the Bitcoin creator actually is. 

Bitcoin price chart from Tradingview.com (whale)

Bitcoin Selling Pressure Incoming?

On-chain data shows that the last transaction on this wallet was in April 2011, where it received 5 BTC. Data from Coinmarketcap shows that the price of Bitcoin at this time was around $1.99. 

However, due to the consistent growth of Bitcoin over the last decade, the owner of this wallet now has over $29 million worth of Bitcoin at their disposal at the current BTC/USD exchange rates. This represents a gain of over 8.8 million percent from the wallet’s last transaction. 

This move could be bearish though if they decided to sell all of their holdings, it could introduce a fair amount of selling pressure on Bitcoin and cause the price to drop, at least temporarily. However, the owner has only moved the BTC to another wallet and not an exchange, suggesting they are more interested in HODLing – the option least likely to impact the market since the BTC would remain dormant.

At the time of writing, bitcoin is trading at $28,501, down 2.24% in the last day.

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On-Chain Data Shows Bitcoin Whale Dumping Behind Dip Below $19k

On-chain data shows the Bitcoin exchange whale ratio spiked up just before the crypto’s plunge below the $19k level.

Bitcoin Exchange Whale Ratio Breached 90% Right Before The Price Dip

As pointed out by an analyst in a CryptoQuant post, the whale activity on exchanges has been raised recently.

The “exchange whale ratio” is an indicator that measures the ratio between the top ten inflow transactions to exchanges and the total exchange inflows.

The ten biggest transfers are assumed to be from the whales, so that the metric tells us what part of the total number of coins moving into exchanges is coming from these humungous holders.

When the value of this indicator is high, it means a large part of the inflows is coming from whales right now. Such a trend can be a sign of dumping from this cohort and can therefore be bearish for the price.

On the other hand, low values of the ratio can suggest whales are making up a healthy part of the transactions to exchanges at the moment. This kind of trend can either be bullish or neutral for the crypto’s value.

Historically, the metric has usually had values above 0.85 during bear markets or fake bulls, while it has generally remained below this threshold during bull runs.

Now, here is a chart that shows the trend in the Bitcoin exchange whale ratio over the last couple of months:

The value of the metric seems to have been elevated recently | Source: CryptoQuant

As you can see in the above graph, the Bitcoin exchange whale ratio surged up yesterday and hit a value of 0.9, implying that whales contributed 90% of the inflows to exchanges.

This spike in the indicator came not too long before the plummet in the price of the coin below $19k, suggesting that dumping from whales may have been behind the drop.

The ratio has also remained elevated since then, which could mean the cohort is continuing to deposit to exchanges, something that could prove to bearish for BTC.

BTC Price

At the time of writing, Bitcoin’s price floats around $19.3k, down 4% in the last seven days. Over the past month, the crypto has lost 17% in value.

The below chart shows the trend in the price of the coin over the last five days.

Looks like the value of the crypto has rebounded back a little to above $19k again since the plunge yesterday | Source: BTCUSD on TradingView
Featured image from Karl-Heinz Müller on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Bitcoin Whales Take Advantage Of Market Crash To Gobble Up Millions In BTC

The bitcoin crash rocked the market to its core when the digital asset had lost over 50% of its all-time high value to bottom out at $33,000. It was as a result of market sell-offs across the financial space, sparking a ripple effect that was felt heavily in the crypto market. Market sentiment had crumbled during this time as investors had scrambled to sell their holdings.

However, not everyone saw the declining prices as a signal to sell before prices tank even more. Whales, who control a large portion of the circulating supply, took this as a cue to buy and have been filling their bags with all of the bitcoin being dumped on the market by panicking investors.

Whale Gobbles Up Traded Bitcoin

In a report from CC15Capital, the trading activities of a whale are outlined. In what came out to be a long document, it shows that the whale had been purchasing tens of thousands of bitcoin every few hours while traders dumped their coins. CC15Capital which is an asset allocator tracked the wallet and discovered that a single bitcoin wallet had been purchasing millions of dollars worth of bitcoin.

Related Reading | Market Sentiment Crumbles As Sell-Offs Drags Bitcoin To $33,000

In the event of the past week’s price crash, this single whale had accumulated millions in bitcoin. Each purchase ranged from $2 to $18 million worth of BTC every few hours, averaging 48,000 BTC per purchase.

It looked like the whale was buying up all coins being dumped on the market. By the weekend, the wallet had successfully increased its holdings by a couple of hundred thousand BTC. The more the price dropped, the more bitcoin the whale bought.

BTC trading above $36k | Source: BTCUSD on TradingView.com

CC15Capital, in response, called for bitcoin investors to stop dumping their coins, which are being bought by whales, thereby increasing the concentration of bitcoin supply in the hands of large investors.

Stop panic selling your #Bitcoin to this guy. He’s been buying $2-18 million worth every few hours. pic.twitter.com/eCE3UKXEfD

— CC15Capital (@Capital15C) January 24, 2022

Tradable BTC On The Decline

CC15Capital also noted that the volume of bitcoin that is available for sale has gone down. Currently, 14.5 million of the total bitcoin supply is illiquid. This means that this supply has not moved, neither have they been traded. It is the highest concentration of supply which looks to be held for the long-term.

In the same tweet, the asset allocator explains that if the wallets holding this illiquid supply were to increase their holdings by a mere 27%, a total of 4 million BTC, there would be no coins left for sale, driving the supply to zero.

#Bitcoin illiquid supply (not traded) is at 14.5 million.

If those who #HODL the 14.5 million Bitcoin, would increase their holdings by 27%, or 4 million $BTC, there would be exactly 0 remaining coins available for sale.

Keep buying and HODL. Law of supply/demand will prevail. pic.twitter.com/RUb6gHSif6

— CC15Capital (@Capital15C) January 24, 2022

Related Reading | Has Bitcoin Reached Its Bottom? Analyst Says It Still Has A Long Way To Go

Other whales have also taken advantage of the sell-offs happening in the market. As the exchange supply is dwindling, these large investors are making sure there is no shortage on their end when a supply squeeze happens.

This is how you buy $1 Billion in #Bitcoin in 2 months.

From $0 in November 2021 to over $1 Billion now.

When you panic sell your $BTC, this is one of the guys buying it.

Buy, #DCA and #HODL. pic.twitter.com/fmjpCFjCEI

— CC15Capital (@Capital15C) January 25, 2022

In two months, a whale wallet that had zero BTC in November has managed to gather an impressthatalance of over $1 billion in BTC. This account looks to have started buying with the crash and has continued to do so ever since. At the time of writing, the wallet balance sits at $1,013,777,643.51.

Featured image from TokeneoBit, chart from TradingView.com

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Bitcoin Whale Address Containing $11 Million Activates After 9-Year Dormancy

Another bitcoin wallet containing millions of dollars worth of BTC has come out of dormancy. As time goes on, more and more of these wallets are being reactivated by their owners who have, for one reason or another, not transacted using these wallets for years despite having what is considered life-changing money in them. This one has not had any activity on it in over nine years and has now activated after a long stretch of dormancy.

Whale Wallet Activates

Whale Alert, a service that posts activity from wallets with large holdings, reported on Sunday that a dormant bitcoin wallet had reactivated. This wallet contained a total of 235 BTC, amounting to $11,114,901. The wallet had not seen any activity for 9.1 years and was reactivated in 2021. The wallet had moved a total of 100 BTC in a $4.7 million transaction.

💤 A dormant address containing 235 #BTC (11,114,901 USD) has just been activated after 9.1 years!https://t.co/TWnFkwIWfr

— Whale Alert (@whale_alert) December 19, 2021

Related Reading | Struggling Prices Beats Bitcoin Expectations Down From $100K To $50K

The wallet which had sat for almost a decade without any activity had promptly gone on to carry out multiple transactions. In the next couple of hours, the wallet holder performed a couple of transactions that emptied out the balance of the wallet into another wallet and the balance now sits at zero.

BTC slumps ahead of market opening | Source: BTCUSD on TradingView.com
How Do Bitcoin Wallets Go Dormant?

There are a number of reasons why a bitcoin wallet would go dormant. One of those is in the event of the wallet holder losing the keys to the wallet. This can happen when a holder forgets that they have bitcoin or may be stored the keys somewhere they can no longer access it. It could take a while for a wallet holder to recover their keys and access said wallet.

Related Reading | Millennial Millionaires Are The Most Bullish On Crypto, Survey Finds

About 20% of all bitcoins are estimated to have already been lost due to users who have lost their keys or have died. There is also the speculation of people who have gone to jail may have had to wait till they got out to access their coins.

Finally, there are the super holders who have held out for years. These diamond hands got in early and have held their bitcoin through all of the ups and downs of the market. Now, they are reaping the rewards of their patience as they finally move their BTC after all these years.

Featured image from Nairametrics, chart from TradingView.com

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Bitcoin Whale Wallet With $150 Million Activated After 8 Years

A good portion of the bitcoin supply has been lost due to holders dying or forgetting their private keys. These coins will never be recovered and are regarded as lost bitcoins. They play into the scarcity factor that drives the value of bitcoin up. It is estimated that 20% of the digital asset has been lost. These could technically still be recovered but it is unlikely since losing a private key means losing the coins held in the wallet.

Since so much of the asset is lost, the rest remaining in circulation are more valuable than ever, especially given the limited supply of bitcoin. Sometimes, though, some of these wallets with BTC which have been regarded as a lost cause can be reactivated again. It could be the holder finally managed to find their lost private keys or they had simply been holding for that long.

Related Reading |  Institutional Bitcoin Open Interest Plummets, But Why?

One of these wallets, dormant for eight years with millions in BTC, has just been reactivated and coins have moved out for the first time in a long time.

Whale Wallet Activates

A whale wallet holding 2,207 BTC has now been activated after spending 8.1 years in dormancy. Whale Alert reported the activation after the wallet began moving BTC out.

💤💤💤💤💤💤💤💤💤💤 A dormant address containing 2,207 #BTC (150,512,129 USD) has just been activated after 8.1 years (worth 294,287 USD in 2013)!https://t.co/a6EPxBbXd5

— Whale Alert (@whale_alert) November 10, 2021

The amount contained in the wallet was only worth $294K when the last transaction occurred on the account. Now, 8 years later, the value of the coins held in the wallet has grown so much that it is now worth over $150 million in 2021. One could speculate as to why the wallet has only begun to transact now but there could be a number of factors at play that could lead to such a long dormancy period.

BTC falls to $65K | Source: BTCUSD on TradingView.com

It could be that the owner of the wallet forgot that they had this wallet. It might sound impossible but could very well be the case. A more likely scenario would be that the wallet owner forgot their private key and could not find it for a long time. Maybe they were finally able to access the wallet in 2021.

Another scenario could be that this is a case of diamond hands. There are holders who have held through thick and thin in the bitcoin market over the years and have refused to sell. This holder could be one of them. Whatever the situation, the reality remains that this is now a very rich holder and they may begin to take profits over the next couple of days.

Inflation Announcement Sends Bitcoin Soaring

Inflation figures for the U.S. were recently announced and the figures came out higher than previous figures. Inflation rates for the country currently sit at 6.2%, higher than anticipated. The growing inflation rates have been a concern for investors in the market. Sending them running to cryptocurrencies, which have proven to be an effective inflation hedge.

Related Reading | Bitcoin Payments Card Are Coming To Asia Pacific, Courtesy Of Mastercard

The recent announcement though spelled good news for the market. After inflation figures came in, bitcoin had rallied towards a new all-time high. This is indicative of investors putting their money into the digital asset to keep it from being affected by inflation.

BREAKING: Inflation came in at 6.2% and bitcoin immediately ripped to an all-time high.

The market is speaking.

— Pomp 🌪 (@APompliano) November 10, 2021

Bitcoin had rallied above $69K for the first time on Wednesday, setting a new record before the close of the trading day.

Featured image from Bitcoin News, chart from TradingView.com

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Bitcoin Bearish Signal: On-Chain Data Shows Whales Have Started Selling

On-chain data shows whale ratio has exceeded the 0.50 mark, historically a sign that whales are dumping in the short term.

Bitcoin Whales Have Started Selling Their Coins

As pointed out by a CryptoQuant post, the Bitcoin whale ratio has started going up above the 0.50 level. This signal has usually meant a bearish outlook for the crypto in the short term.

The BTC all exchanges whale ratio is an indicator that gives an estimation of how many whales are sending their coins to exchanges.

The metric does so by taking the sum of the top 10 transactions to each exchange and dividing it with the total inflow on all exchanges.

Exchange Whale Ratio= Sum of Top 10 Exchange Inflow TXs (BTC) ÷ Total Exchange Inflows in BTC​

The “inflow” is another indicator, it gives the total amount of Bitcoin entering into exchange wallets from personal ones.

When the whale ratio rises, it means the top 10 transactions to exchanges are taking up a larger part of the total BTC going into these exchanges.

This means more whales have started sending their coins to exchanges, either for withdrawing to fiat or stablecoins, or for purchasing altcoins.

On the other hand, when the value moves down, it means the general small transactions make up the majority of the inflows to exchanges, and that Bitcoin whales aren’t moving their coins around at this time.

Related Reading | Could A Bitcoin Bull Flag Leave Bears Blindsided

Here is a chart showing the trend in the value of the indicator over the past year:

The Bitcoin whale ratio has once again started climbing up | Source: CryptoQuant

As the above graph shows, the whale ratio has soared many times in the past year, and whenever it has, a crash in the price of the coin has also followed shortly after.

Related Reading | JPMorgan Analysts Say That Big Money Are Dumping Bitcoin For Ethereum

Looks like the whale ratio has once again started to move up as its value now crosses 0.50. This could indicate that BTC might move down next in the short term at least.

BTC Price

At the time of writing, Bitcoin’s price floats around $42k, down 3% in the last seven days. Over the last month, the crypto has lost 13% in value.

The below chart shows the trend in the price of the coin over the last five days:

BTC’s price seems to have crashed down once again | Source: BTCUSD on TradingView

After showing some recovery from the crash due to news about China’s ban, Bitcoin has once again crashed down back to $42k after going up near $44.5k.

If the whale ratio is anything to go by, the price might continue to move further down in the short term. Maintaining above $40k is going to be crucial for any big moves forward.

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Bitcoin Whale Ratio Soars, Could A Crash Be Coming?

The Bitcoin all exchanges whale ratio has soared, which might be an indicator that a crash could be coming soon, based on past patterns.

The All Exchanges Whale Ratio Soars

As pointed out by a CryptoQuant post, the Bitcoin All Exchanges Whale Ratio had a sharp spike on Sunday.

The BTC All Exchanges Whale Ratio is defined as the total amount of coins in top 10 transactions of all exchanges (that is, the transactions with the most BTC sent) divided by the total amount of coins flowing into the exchanges.

Bitcoin All Exchanges Whale Ratio= Sum of Top 10 Exchange Inflow TXs (BTC)​ ÷ Total Exchange Inflows in BTC

The indicator shows the relative size of the top transactions to the total inflows on all exchanges. Based on which, it becomes possible to tell the ratio of whales that are using the exchanges.

Now, here is how the Bitcoin all exchanges whale ratio chart looks like for the year 2021:

Bitcoin Whale Ratio

The BTC whale ratio seems to have risen | Source: CryptoQuant

As is clear from the chart, the value of the Bitcoin all exchanges whale ratio seems to have sharply increased recently.

A notable feature of the graph is that the value of the indicator right now, about 0.6, has only been surpassed by three other occasions in the year.

Related Reading | Analyst: Bitcoin Approaches “Critical Intersection Of Macro Support”

And shortly after those periods where the ratio spiked, a decline in the price of Bitcoin has always been observed.

The reason behind the drop is that whenever the indicator increases in value, it means whales are sending their BTC to exchanges for selling/exchanging purposes. Whales dumping their coins has always driven the price down.

Bitcoin Price

As of the time of publishing, BTC’s price is going around 33.5k, down almost 0.8% in the last 7 days. Compared to one month ago, its trading value is about 6% lower.

Here is a chart noting the trend in Bitcoin’s price over the last 6 months:

Bitcoin Price

BTC's price seems to be on a downtrend | Source: BTCUSD on TradingView

The price of Bitcoin continues to be range bound as the crypto fails to escape the $35k resistance line. The volatility has dropped to the lowest of the year as the coin’s price stagnates.

Based on the behavior of the indicator this past year, the current spike in the BTC All Exchanges Whale Ratio might suggest that a drop in the price could be coming soon.

Related Reading | TA: Bitcoin Prints Bullish Pattern, Why Close above $35K Is Crucial

It’s unclear how much the price would drop if the pattern indeed holds, and whether the market will enter a bear market afterwards. It’s also possible that a small dip could be there that’s followed by a long-term bull market.