The market intelligence platform IntoTheBlock has disclosed that the largest Bitcoin holders have been the primary source of selling pressure during the recent price downturn.
Recent Supply Reductions by Bitcoin Mega Whales
In a recent update on X, IntoTheBlock explored the latest trend regarding the Bitcoin supply controlled by whales. The term ‘whales‘ generally refers to parties who possess more than 1,000 tokens of the cryptocurrency.
At the current exchange rate, this significant amount translates to an impressive $88.9 million, thereby indicating that only high-capital investors would fall within this category.
Notably, the focus isn’t solely on regular whales, but specifically on the largest among them: those holding over 10,000 BTC (valued at $889 million). This segment can be referred to as the ‘mega whales.’
Here is a chart provided by the analytics firm illustrating the trend in holdings of Bitcoin mega whales over the past week:
The chart demonstrates that Bitcoin mega whales have been liquidating some of their holdings amidst the recent price drop. Interestingly, it suggests that these investors commenced their selloff several days prior, potentially indicating they anticipated the market decline.
According to IntoTheBlock, this group represented the primary sellers during this period. In fact, the analytics company noted that other Bitcoin holders have been accumulating during the same time frame, suggesting that smaller investors are seizing the drop as a buying opportunity.
In total, the mega whales sold 25,740 BTC (nearly $2.3 billion) within the past week. Observing this group’s actions in the upcoming days could provide insight into market direction, as their movements may sway Bitcoin’s trajectory alongside the buying trends of other investors.
Classifying BTC holders by balance is one approach; another involves analyzing exchanges, as different platforms cater to varied investor demographics. Two key exchanges in this context are Coinbase and Binance.
Coinbase primarily attracts US entities, particularly large institutional traders, while Binance caters to a global investor base. A useful metric for assessing behavioral differences between these two demographics is the Coinbase Premium Index.
This index gauges the percentage difference between the Bitcoin price on Coinbase (USD pair) and that on Binance (USDT pair). As noted by CryptoQuant’s founder and CEO Ki Young Ju in a post on X, the Coinbase Premium Index has recently shown negative values.
This pattern, coupled with the fact that Coinbase’s spot trading volume has surged recently (as shown in the left chart), indicates that American whales have played a significant role during the market crash.
Current BTC Price
Bitcoin approached the $86,000 threshold during a recent dip, but has since experienced a rebound, currently trading around $88,700.
