Whales Makes a Withdrawal Spree, As BTC Reaches a New High

The number of addresses holding more than 1,000 BTC has significantly increased since late January, closely following the spike in the price of Bitcoin. Large Bitcoin whales are starting to sell off their holdings as the market is experiencing a surge of bullish momentum. 

Reacting to the recent development, Zoltan Vardai from Cointelegraph says that the trend of institutional and mainstream acceptance of Bitcoin is very much in place, notwithstanding the possibility of short-term volatility brought on by whale behavior. 

It is anticipated that the market for cryptocurrencies will continue to expand and innovate due to the persistence of widespread acceptance of cryptocurrencies and the rising interest from retail investors. Michaël van de Poppe, a popular industry influencer, says he’s expecting a market correction that will affect up to  30% of Bitcoin value, and may extend to altcoins in subsequent time.

Increase in Number of Wallet Holders Linked to ETF Performance

Through their purchasing and selling activities, these whales—who frequently have a great deal of influence over market dynamics—play a vital part in determining the course of Bitcoin’s price.

The increase in the number of wallet holders has been linked to the positive performance of the United States spot BTC ETFs, which had exceeded  $52.5 billion in total trading volume by March 4.

Other whales who have held back their assets are still optimistic that the price of BTC will rise further. According to CryptoQuant’s Head of Research, Julio Moreno, who claimed he took note of the BTC’s price change on March 7, posted on his X handle that the increase in the number of Bitcoin whales holding back their assets will be significant. 

The number of wallets in possession of more than 1,000 BTC has greatly gained from the latest BTC price increase. Ali Martinez, a popular cryptocurrency influencer posted on  X, provided insights into the selling pattern of the Bitcoin these whales. He said that the rise in recent BTC distribution, as of last month, has resulted in a 4.83% decrease in the number of Bitcoin whales. 

BTC Regroups, Targets $92,500 in the Next Bull Run

These whales’ decision to sell off their holdings during the Bitcoin surge points to a cautious assessment of the market and a desire to lock in profits in the face of uncertainty. This will continue as the United States spot BTC ETF continues to drive demand for the BTC.

The BlackRock iShares Bitcoin Trust (IBIT) recorded $788 million on March 5, one of the most significant daily inflows recorded so far from the inception of spot BTC ETF. Cointelegraph, in its recent report, wrote that the BTC is currently targeting the $92,500 price mark, as shown by several on-chain technical indicators.

A recent Bitcoin price chart shows that the coin is getting ready to make another significant bullish run. Such wallets declined below 2,100, and the selling pressure also affected the BTC performance – BTC displayed a little resilience but continued its upward movement.

Analysis Shows Sharp Decline in the Number of Bitcoin Whales 

According to the analysis, there is a noticeable slight increase in the number of wallet addresses that have been holding more than 1,000 BTC since January 2024 – as they’d anticipated a further increase in the price of BTC. The declining number of wallet owners is lower than 2,489, the same number in 2021 when the BTC was trading at $46,000.

These whales withdrew their assets by the end of February, at the same time  the price of BTC rose from $51,000 to $60,000. Data from the Glassnode chart displayed a sharp decline in the number of wallet addresses holding more than 1000 BTC.

Meanwhile, the remaining Bitcoin whales, after the decline, sold more BTC coins two weeks ago. These investors have been accused of slowing down the price of BTC, preventing it from reaching higher price territories.