It is clear that the Bitcoin whales are not very loyal to their currencies, as after some time the Bitcoin failed to resume its rise, the number of people with large amounts of Bitcoin in their wallets decreased.
According to data from Glassnode , the number of Bitcoin whales has dropped sharply since the start of 2021, going from 2,237 on February 7 to 1943 earlier this week.
Why do bitcoin whales get rid of what they carry?
This decline could have a number of reasons, most notably:
- Bitcoin’s price drop, or at least the price trend became slower, dampening the accumulation process.
- Expectations of higher interest rates in the US make investing in alternative assets like Bitcoin less attractive, since keeping money in the bank generates higher returns with less risk, it is likely that many whales and investors who do not do much with their bitcoins will exit.
- The allure and record highs of alternative cryptocurrencies have led to a massive migration of funds.
The strength of altcoins:
Alternative digital currencies such as Ethereum and BNB are indicating clear and continuing bullish trends, which has attracted the attention of many investors.
DeFi projects, NFT and meme coins are also the latest trend at the moment with an ROI like the 2017 frenzy.
The CEO of “CryptoQuant” believes that many investors may sell their bitcoins in order to bet the price of some copies of “Dogecoin”, such as “SHIB” which rose by 1700% last week and 28,600% last month.
Of course, this is bad news for Bitcoin.
Declining popularity and increasing huge sales could further put downward pressure on the Bitcoin price.
Mr Pankaj Palani, co-founder and CEO of Singapore-based Delta Exchange, confirms this proposition, stating:
THE DATA IS BEARISH, AS IT SHOWS A CLEAR TREND IN THE UNLOADING OF WHALE POSSESSIONS.
While looking at the bitcoin price, we find it still respecting the main support within its ascending channel, expectations about the implementation of the “Taproot” upgrade are high and could contribute to increasing the momentum around the bitcoin price.