The recent surge in Bitcoin price has led to large whale holders of the cryptocurrency taking advantage of the high prices to cash out some profit. These whales, who hold at least 1,000 BTC in their wallets, have been reducing their allocations over the past few months. This decrease in the total number of BTC held by large wallets indicates that whales have been selling off some of their coins to secure profits.
The selling activity by these large whales can have a significant impact on the price of Bitcoin. Given the size of their wallets, whales have the ability to dump a large amount of supply on the market in a short period of time. If there is not enough demand to absorb this supply, it can lead to a crash in the price of Bitcoin. This could explain the flash dips that have been observed in the market as Bitcoin surges to new all-time highs.
While whale selling may create short-term price volatility, the response from the market indicates that there is enough demand to absorb the supply. For example, on Tuesday, March 12, when Bitcoin touched $73,000 and experienced a flash crash to $68,000, it quickly recovered and reached a new all-time high of $73,600. This demonstrates that while whale activity can impact price, there is still strong demand for Bitcoin in the market.
At the time of writing, Bitcoin is holding steady at $73,000 with a 7-day increase of 10.49%. Despite the selling activity by large whales, it is evident that there is still a bullish sentiment in the market. While whale selling may continue to create short-term fluctuations in price, the overall trend seems to be a positive one for Bitcoin.
The activity of whales in the Bitcoin market is a crucial factor to consider when analyzing price trends and volatility. While whale selling may lead to short-term dips, the overall demand for Bitcoin remains strong, as evidenced by the quick recovery from flash crashes. Investors are advised to conduct their own research and make informed decisions when it comes to investing in cryptocurrencies.