According to Whale Alert, during this week, whales have mobilized a total of 98,672 BTC through 65 operations. Apparently, whales sell their Bitcoins quickly. At the same time, the value of Bitcoin has fallen below US$30K. Is there any correlation? See.
Analyzing Bitcoin whale trends: why are they selling their tokens?
Firstly, the predominant trend of Bitcoin whales is the introduction of liquidity to the market, at least in terms of BTC mobilized. Specifically, 58,410 BTC passed from unknown wallets to exchanges since the beginning of the week (59.19% of the total).
Next, the second strongest trend has been the accumulation of BTC. Thus, we have that 26,228 BTC passed from exchanges to unknown wallets at this time. With this, it represents 26.58% of the total.
In third place, we place the transfer between exchanges, with 14,034 BTC (14.22% of the total). Finally, it should be emphasized that no transactions were recorded between unknown wallets.
What is the relationship of this whale activity with the performance of cryptocurrency?
At press time, the leading cryptocurrency has a value of US$29,103, representing a loss of 3.30% of its value in the last 24 hours. However, this reality has not changed much so far this week.
The realized short-term volatility of Bitcoin remains elevated, as the cryptocurrency struggles to maintain the $30,000 price level. And implied volatility (based on the expectation of market movement over the course of a week), rose on Wednesday. This suggests that price action could remain choppy as traders react to macroeconomic risk and turmoil in the Stablecoin market.
That is why we see that whales seem to want to make the most profit they can from their tokens, however, this may reach a limit. Currently, the options market puts the probability of BTC trading above $25,000 in June at 66%, according to data provided by Skew.
Other signs
Even, the options market data continues to show a greater demand for put versus call options. This means that traders are actively hedging the risk that prices will continue to fall.
Likewise, the 50-day moving average of the ratio of buying to selling volume has decreased in the last two months. In that case, we would be talking about persistent selling pressure, which is reflected in the activity of Bitcoin whales as well.
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