Following the most recent Bitcoin short-term price increase, it looks like whales are back in play since large transactions will likely influence the asset’s price.
Notably, on-chain activity shows that the world’s biggest non-exchange Bitcoin whale sold around 46,000 BTC in two days, a transaction worth $1.08 billion based on the Bitcoin price at press time of $23,500, according to data from Bitinfocharts.
The transaction began on July 18 as a series of sales totalling $15,500 BTC. 500 BTC were sold in the first significant transaction, 2,500 BTC in the second and third, and 5,000 BTC in the fourth and fifth.
The whale increased the Bitcoin unloading with two transactions totalling 10,000 BTC on July 19 and 20,000 BTC on July 20. The whale’s balance after the trades is 71,381.898 BTC.
Considering that the behaviours of whales tend to affect the price of an asset, the Bitcoin community will often investigate the reason for the sale of a large quantity of Bitcoin.
Notably, whales’ sales of Bitcoin may operate as the negative impetus for the assets, indicating that the present capacity to stabilise over $20,000 may be temporary. Despite the crypto market drop, the whale made a profit by selling the Bitcoin.
Due to the anonymity of Bitcoin addresses, the whale may be an early user of Bitcoin who acquired the commodity at a discount. Similarly, the necessity to earn funds may have prompted the anonymous holder to liquidate.
Effect on the whale population
The broader bitcoin market collapse has recently influenced the whale concentration. Finbold revealed that the number of Bitcoin whales had decreased by around 5 percent in only four days. The decline was followed by more Bitcoin price declines that eventually dipped below $20,000 at one point.
In addition, sixteen Bitcoin whales sold their Bitcoin during the same week in April, when the currency required huge holders to force its price upward.
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