Bitcoin Whale Numbers Fall To 2019 Levels
In early February, the number of Bitcoin whales, which are wallets holding more than 1,000 BTC, reached a new all-time high, according to data from Santiment. What followed was an impressive 70% rally for the digital asset which saw its price surge past $25,000 for the first time in six months. This was not surprising as increased whale accumulations have also come with positive movements in price given that they take a significant portion of supply out of the market. However, with the number of whales holding 1,000 or more BTC declining, there could be more downside to come.Number of whales holding over 1,000 BTC falls to three-year low | Source:
Will Whales Drag Down The Price?
The decline in the balances of bitcoin whale wallets could explain the current downtrend in the market. Usually, when investors reduce their holdings, it means they have sold them off, and with these large whales selling off millions of dollars worth of coins, it will certainly have an impact on the market.
BTC price falls below $23,400 | Source:
Additionally, the decline in the number of large BTC whales could also signal more decentralization in the network as coins circulate to smaller retail holders. So while it may end up being negative for the price of the digital asset in the short term, it carries more long-term positive implications.
At the time of writing, the price of bitcoin is trending at $23,404. It is down 1.49% in the last 24 hours with additional 3.62% losses on the seven-day chart.