Bitcoin whales in a weekly roundup: how are they continuing February?

From February 14 to 20, Bitcoin whales have mobilized a total of 48,652 BTC through 34 operations. If we contrast it with the previous weekly summary, we will see that the decrease in their activity is considerable. Therefore, we tell you here the details and the influence that this may or may not have had on BTC.

During the third week of February, Bitcoin whales have been accumulating BTC, and in a somewhat quiet activity. In order to assess this in detail, here is a summary of the activity of Bitcoin whales according to Whale Alert records.

As always, we emphasize that this activity must be put into context to better investigate the status not only of whales, but of the market as a whole. Before continuing, we must clarify that all the data in this publication can be viewed on the Whale Alert page, and Twitter. This is only a micro approximation to one of the factors that can influence the performance of BTC, but it is not the only one.

Summary of the activity of Bitcoin whales this third week of February

At the moment, we can say that the predominant trend was accumulation. Specifically, 27,860 BTC went from exchanges to unknown wallets (57.26% of the weekly total). We can also talk about a strong HODL on the part of these directions. Whale Map’s Twitter account reported precisely this on February 15.

Next, the second strongest trend was the introduction of liquidity to the market. Thus, we have that 13,615 BTC passed from unknown wallets to exchanges during the last week. This represents 27.98% of the weekly total.

In third place, we place the transfer between exchanges, with 7,177 BTC (14.75% of the weekly total). Finally, no whale transfers were recorded between unknown wallets according to Whale Alert.

How has Bitcoin’s performance been?

Bitcoin remains in its short-term downtrend that started in November, currently 40% below its all-time high near US$69K. At the time of writing the post, BTC is worth US$39,180, which represents a decrease of 2.09% in today’s session. It also translates into a setback with respect to the attempt that had to overcome the 45K at the beginning of the week. Over the weekend, the leading cryptocurrency touched the 38K line.

Specifically, Bitcoin fell below 40K in the early hours of the weekend and continued to fall amid rising tensions on the Ukraine-Russia border and ongoing inflationary fears.

The declines came as US intelligence reported that Russia had already decided to invade Ukraine. Meanwhile, investors were bracing for the first of what is expected to be several interest rate hikes from the Federal Reserve. Thus, the momentum signals remain negative, which indicates a constant selling pressure over the past month.

According to CoinDesk, if BTC breaks the US$28,000 – US$30,000 range, “prices could experience an additional drop, similar to the 80% drop from peak to low during the 2018 bear market.”

Analyzing everything together

The open conflict of Russia and Ukraine could potentially affect Bitcoin hash rates, which could exacerbate the weaker market’s knee-jerk reaction for high-risk assets. This is according to David Duong, head of research at Coinbase.

For now, the technical data is mostly bearish for the cryptocurrency. It is in this scenario that the whales decided to take a step back, and therefore we see a decrease in activity and withdrawal of liquidity from the market. So far this month, BTC trading volumes on major spot exchanges are still low relative to previous peaks. In summary, we can expect the rest of February to be critical for the leading cryptocurrency, and for Bitcoin whales to act with a little more caution.

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