Bitcoin has been on a bullish trajectory, reaching new all-time highs and breaking above $73,000. However, with this surge in price, large Bitcoin whales holding at least 1,000 BTC in their wallets have started to sell off some of their coins. This selling activity by the whales has led to a decrease in the total number of BTC held by these large wallets.
The selling behavior of these large whales began after the price of Bitcoin reached its 2021 all-time high of $69,000. Since then, there has been a steady reduction in the total balances of these whales. In February, there were around 2,150 wallets holding more than 1,000 BTC. However, by March, this number had decreased to around 2,040.
The decision of these large whales to sell off their holdings can have a significant impact on the price of Bitcoin. This is because these whales have the capacity 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 selling pressure, it can lead to a crash in the price of Bitcoin.
The whale selling activity may have been responsible for the flash dips that Bitcoin experienced as it surged to new all-time highs. One such example was on Tuesday, March 12, when the price of Bitcoin briefly touched $73,000 before experiencing a flash crash to $68,000. However, the price quickly recovered and reached a new all-time high of $73,600.
Despite the selling pressure from the whales, the market has shown resilience in absorbing the supply. The quick recovery of the price following the flash crash indicates that there is significant demand for Bitcoin. The 7-day increase of 10.49% in the BTC price demonstrates that bulls have regained control of the market.
The selling activity of large Bitcoin whales holding at least 1,000 BTC has led to a decrease in the total number of BTC held by these wallets. This selling pressure may have contributed to the flash dips experienced by Bitcoin, but the market has shown the ability to absorb this supply. Despite the potential impact on the price, the demand for Bitcoin remains strong, as evidenced by the rapid recovery and new all-time highs being reached.
As investors, it is important to be aware of the actions of these large whales and their potential impact on the market. Conducting thorough research and staying informed can help make informed investment decisions in the volatile cryptocurrency market.