BTC Whales Withdraws 21,400 BTC from Exchanges in One Week

The latest report says that the Bitcoin whales withdrew over 21,400 BTC from multiple exchanges within one week. The sector has been rocked by this enormous flow of capital, which indicates a dramatic change in investor behaviour and market dynamics.

On March 14, investors started to move their Bitcoin assets, with $752 million worth of BTC being withdrawn in a day. Many observers were taken aback by this abrupt spike in withdrawals, which raised questions regarding the reasons behind such a large movement of funds.

As to the information provided by Coinglass, a prominent analytics platform for cryptocurrencies, says that only $1.81 million worth of Bitcoin is currently available on exchanges. Investors and dealers who depend on exchanges for price discovery and liquidity are alarmed by the sudden drop in available liquidity on trading platforms. 

Institutional Investors Increase Investment, Predicts Less BTC Accessibility

Analysis obtained on CoinGape disclosed that institutional investors in Bitcoin have been adding more money as a hedge against inflation and a store of value during difficult economic times. These investors include hedge funds, family offices, and corporate treasuries.

The supply-demand dynamics are unbalanced, and there is less Bitcoin available for trading on exchanges, which could result in higher price volatility and liquidity constraints during solid trading activity. Many analysts are still optimistic about the cryptocurrency’s long-term potential amid the massive withdrawals

Significant BTC withdrawals from exchanges by Bitcoin whales have an effect beyond merely volatile prices.  The need for decentralized exchanges and peer-to-peer trading systems grows as more investors have choosen to keep their money in private wallets.

Analysts Perturbed, Say BTC is Getting Ready for More Volatility

Throwing more light on the development, Deka said that the increasing scarcity of Bitcoin on exchanges may also encourage ordinary investors to speculate and experience FOMO (Fear Of Missing  Out) as they rush to purchase Bitcoin, hoping its price will rise. This surge in retail demand could cause a supply-demand mismatch and increase short-term price volatility.

They see increasing institutional adoption of Bitcoin and the general public’s acceptance of digital assets as signs that these will continue to be valuable and useful. There are still unanswered questions regarding the legislative framework and the possible effects of government intervention on the bitcoin market.

The acceptance and mainstream integration of Bitcoin and other digital assets may face obstacles due to regulatory scrutiny, which might impact investor confidence and market sentiment. With Bitcoin whales persisting in their audacious actions  the cryptocurrency market is prepared for more volatility.

It’s still being determined if this pattern will continue or change, but the days of Bitcoin whales having a big impact on market dynamics is expected to continue. Chayanika Deka from CryptoPotatoe maintained that the move toward self-custody results from a long-term investing strategy emphasizing “hodling” overactive trading and a desire for more security and control over digital assets. 

Analysis Shows BTC’s Historical Price Trend, Dips Further by  2.17%

Earlier this week, BTC’s price dipped below $65,000, a 13% drop from its initial all-time high of $73,836. As of press time, the price of BTC dipped further down by 2.17%, to settle at  $66,841.59, with a market capitalization of $1,316,935,186,657: a 2.16% drop.

The BTC trading volume didn’t reflect the downturn, up by 6.01%, representing $55,080,993,598 traded in the last 24 hours. CoinMarketCap placed BTC’s one-month gain at 25% while associating the latest bull run with the coin’s latest biggest liquidations. 

Amid the continued fall in the price of BTC and other major players, cryptocurrency experts are in dispute over the existence of a BTC price correction. Meanwhile, over 151,000 traders have liquidated their current position within 24 hours. The total liquidation resulting from this current market is $426.02 million, with Bitcoin assets topping the list. 

Historical analysis by CryptoRank stated that Bitcoin’s daily transactions reached  528,503 from 1-15 September 2023. At the same time, it dropped to 284,704 from 1-21 October 2023. The average number of daily BTC transacted by September 2023 was around 489,165, and 464,969 in July.