Usually, the activity of Bitcoin whales gives us a hint of what could happen next in the BTC market. However, this time we want to analyze what exactly happens while the whales mine their BTC and as the reserves in exchanges reach new lows.
Whale Alert and CryptoQuant have taken note of large BTC transactions from major cryptocurrency exchanges to unknown wallets. If we look at the bigger picture a little bit, it could be said that the increase in whale activity and the movement of BTC out of exchanges could be a sign of an underlying bullish sentiment.
Last week, Whale Alert records showed that around 30K BTC had been moved from Coinbase Pro. The move occurred in three quick transactions, each totaling almost 10K BTC. This Tuesday, more than 6000 BTC from Coinbase, Binance and Kucoin were relocated to unknown wallets.
At the moment, it does not seem very clear if they were real purchases or simply from exchanges that move money. This Tuesday’s move, despite its massive scale, does not seem to have had much effect on Bitcoin’s price variation.
On the other hand, this seems like a trend that has already had time with us. According to CryptoQuant, BTC reserves on exchanges have continued to decline over the past 2 months. In this way, it is maintained as the minimum for several years. CryptoQuant data currently shows that BTC reserves on exchanges total 2.357 million.
Following the trend of increasing whale activity, Whale Alert revealed that an 11+ year old Bitcoin wallet became active once again. The wallet contains about 489 BTC and has not been active since 2010. At the moment, it seems that there is a greater presence of whales on the market.
Is there accumulation in the market?
With exchange reserves at multi-year lows and the recent liquidity withdrawal, we could talk about a possible underlying bullish sentiment in the market over the long term. However, in the short term, the market continues to oscillate.
Bitwise chief investment officer Matt Hougan said he expected Joe Biden’s executive order on cryptocurrencies to spark a one-year bull run. In that sense, the asset has been corrected to currently trade at US$ 40,296 and has increased by 2.93% in the last 24 hours.
We will see what happens from now on, not only with Bitcoin, but with the regulations on Cryptocurrencies that arise globally. Another factor to take into account is what happens worldwide in the markets due to geopolitical tensions due to the conflict between Russia and Ukraine. The truth is that the minimum of BTC reserves on exchanges is real, and it seems that it could stay that way for a while longer.
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