In the ever-evolving world of crypto assets, certain news and announcements are known to significantly impact the behavior of investors and traders as evidenced by Bitcoin’s major players following the announcement of over $1.5 billion worth of BTC acquisition by car manufacturing firm, Tesla.
Are Bitcoin Whales Leaving The Market?
Since Tesla’s announcement of a significant BTC acquisition, the number of large Bitcoin holders or whales have experienced a drastic persistent drop, signaling a notable shift in market dynamics. Alphractal, an advanced platform for investment data analysis reported the negative trend in a recent post on the X (formerly Twitter) platform.
BTC whales also known as Original Gangsters (OGs) have historically been crucial in keeping the asset’s price stable. Nonetheless, this decline raises the possibility that large investors are reallocating their holdings in the midst of Tesla’s massive acquisition, which could impact the overall market sentiment.
This sharp decrease is particularly cited among Bitcoin whale addresses holding about 1,000 BTC or more. According to the investment platform, the number of these whale addresses has fallen from 2,490 to about 2,074, indicating a 16.7% downswing following the announcement. “In any case, there has been a reduction of 416 addresses, meaning there are currently fewer whale addresses than before,” the platform added.
It is important to note that these addresses with 1,000 BTC or more distributed their holdings after Tesla’s announcement. In addition, the decrease in addresses pertains to unidentified addresses, which makes identification difficult. With more Bitcoin leaving exchanges and funds continuing to build, this suggests that the dynamics among the major participants are shifting annually.
The news has impacted the mood of large investors despite the fact that Tesla’s BTC addresses are unknown to the public and there is no knowledge of whether the purchase was made shortly after the announcement. However, it is widely known that the initial major drop was unrelated to crypto exchanges because reserves rose until the middle of 2021.
Furthermore, it is known that Bitcoin’s movement between exchanges rose in February 2021, and miners traded roughly 20,000 BTC on the day of the announcement, which implies that miners‘ Bitcoin holdings are steadily declining. Meanwhile, during this period, there were no indications that the addresses of funds or publicly traded companies had changed.
BTC’s Downtrend Continues
Following a pullback during the weekend, BTC has continued to trend downward, triggering speculations about its near-term performance. At the time of writing, the crypto asset is trading at $68,664, demonstrating a nearly 1% decrease in the past day, and over 3% decline in the past week.
Despite the price drop, bulls appears to be optimistic about BTC as its trading volume has surged by more than 24% in the last 24 hours. Should the bulls sustain control over the market, there is a possibility of a rebound in the coming days.
