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Bitcoin whales increased their movements this week

During the last few days, the Bitcoin whales increased their trading volume considerably compared to the previous week. In a notable rally, large holders also widened the gap between coins earmarked for accumulation and those sent toward possible liquidation.

This last point is of great importance, since these two trends determine possible scenarios of price rise or fall respectively. In this way, the shipments to the exchanges occupied a higher percentage compared to those of the past weeks. It should be clear that these movements do not necessarily translate into settlement, but rather an increase in settlement possibilities.

It is worth keeping in mind that for this work data was taken from the portal Whale Alert and the Telegram bot, WhaleBot Alerts. Likewise, transactions of 500 BTC and above were taken into account. As always, it is noted that these data are public and available on the web. Meanwhile, their interpretation corresponds to this medium. The criteria for this analysis can be found at this link.

Bitcoin whales wake up after weeks of low activity

This week differs from previous ones in that the Bitcoin whales increased their own trading volume. After last week’s dramatic drop to 54.9 thousand coins traded, this time the figure increased to 111.6 thousand bitcoins.

The most notable aspect of this increase in whale movements is the already mentioned expansion of shipments to centralized exchanges. It should be noted that there was also a notable increase in currency movements between different exchanges. Although the figure for the latter covers just 3.7% of the currencies traded in the week, compared to previous cycles in huge.

BTC moving between exchange portfolios generally does not have any impact on the price of the pioneer coin. These are movements that traders make to take advantage of price differences between one platform and another (arbitrage).

On the other hand, the fact that the Bitcoin whales increased their trading volume and devoted a large amount towards the possible sale could have influenced the price. The volatile macroeconomic conditions in the United States and other countries and the expected extreme response from central banks sent markets back for several days. As a consequence, the BTC price struggles to stay above 22K.

The fear of investors could have caused the sale of a good part of the coins sent to the exchanges. If this is added to the low volume of general trade, the result could not be otherwise.

Bitcoin whales resume activity.
Whales increased the number of bitcoins traded and also the gap between coins sent towards potential settlement and coins sent towards accumulation wallets. Source: Whale Alert/Whalebot Alerts

This is how the bitcoins of the large holders moved during the week

Compared to the previous week, Bitcoin whales had consistent trading activity. Of 54.9 thousand coins, these investors moved 111.6 thousand between one and another 7-day tranche. In the last one, that is, in the week that ended on March 5, 61.5% of all the bitcoins moved were sent to the exchanges for possible sale.

At the other extreme, only 34.7% was sent from exchanges to accumulation portfolios. This equates to 38.7 thousand BTC compared to the 68.7 thousand bitcoins sent to exchanges. At the same time, some 4,199 coins moved between exchange portfolios, which is equivalent to 3.7%. This last figure was surely higher, but in this case transactions of less than 500 BTC are not taken into account.

Regarding the widening between possible liquidation and accumulation, it is worth noting that it was notable. Last week, the first case was just 31.1 thousand coins (56.7%) and the second case 23.7 thousand bitcoins (43.2%). By then, these movements presented an indeterminate trend for the price.

As always, it is highlighted that this reality could change suddenly depending on the factors that motivate the whales to increase or reduce their dynamics. For now, the Bitcoin whales can be said to have increased their trading volume, as well as the magnitude of possible sales, which is negative for the price.

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