Again, the end of a month marked by the fall of Bitcoin and the cryptocurrency market in general is approaching. In this context, monitoring the activity of Bitcoin whales becomes a more than necessary exercise, considering the perspectives they can give us of what is happening in the market.
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 weekly activity of Bitcoin whales
From May 16 to 22, Bitcoin whales have mobilized a total of 159,519 BTC through 115 operations.
Currently, we can say that the predominant trend was the introduction of liquidity to the market, at least in terms of mobilized BTC. Specifically, 94,354 BTC passed from unknown wallets to exchanges (59.15% of the weekly total).
Next, the second strongest trend was accumulation. Thus, we have that 44,971 BTC passed from exchanges to unknown wallets during the last week. With this, it represents 28.19% of the weekly total.
In third place, we place the transfer between exchanges, with 20,194 BTC (12.66% of the weekly total). Finally, it should be emphasized that no movements between unknown wallets were recorded this week.
How has Bitcoin’s performance been?
At press time, Bitcoin has a value of approximately US$ 29,974, which represents an increase of 1.95% in the last 24 hours. Throughout the week, the leading cryptocurrency has been struggling to stay above 30K, but it hasn’t been straightforward.
Since this Friday, the activity in BTC options suggests a growing bearish sentiment among investors, as the asset oscillates between the price levels of US$29,000 and US$30,000. It is noteworthy that the asset has been sliding for seven consecutive weeks.
On the other hand, amid the falling BTC prices, there is also some concern about miners and their profitability. The hashprice has been trending down due to 1) the falling USD price of Bitcoin, 2) more miners coming online, and 3) the subsequent increase in network difficulty. This is a metric developed by Luxor Technologies, and represents the expected value of mining.
In theory, miners shut down their machines every time Bitcoin prices drop significantly and it is unprofitable to keep them running. This time, even though the hash price has decreased, we have not seen this kind of drop.
Faced with all these variables, the activity of the Bitcoin whales seems to be simply to take whatever profits they can while the market continues to be disturbed. However, we recommend close monitoring of any updates in traditional markets, as an increasing correlation between assets such as BTC and these markets has been noticed.
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