This week was one of negative events for the cryptocurrency market. The fall of the Silicon Valley Bank (SVB) and the comments of the representatives of the Federal Reserve promoted pessimism among investors. That also motivated the behavior of Bitcoin whales, which intensified shipments to centralized exchanges or CEX.
At the same time, the movements tending to the possible sale by the large holders also fed back the downward trend of the price. It should not be forgotten that shipments to CEXs have the implicit possibility of settlement, which apparently was the case this week.
In any case, this paper analyzes the movements of large investors over the last 7 days. For this, data is taken from the sites Whale Alert and the Telegram bot WhaleBot Alerts. As always, it is worth noting that these data are public and can be verified online. To understand the criteria for the analysis of the movements of the whales, you can enter this link.
Why Bitcoin Whales Intensified Selling Pressure
Now that Bitcoin whales have intensified their shipments to exchanges, it is important to highlight the role of those investors in the price. These are holders of thousands of coins that make their moves to generate a shortage or abundance of liquidity in the market, which translates into price increases and decreases respectively.
The whales push the wreck down to buy more coins, and then make moves up the wreck for profit. Once the price rises, of course, they proceed to take profits, which leads to a correction. That cycle is endless and is part of the dreaded and alluring volatility of the pioneer coin.
However, the maturity of this asset added other players to the market, which means that the whales are not the absolute kings of the price. In other words, there are several factors that determine the price and whales are one of them, not the only one. With that in mind, one should not lose sight of the fact that these big holders are more cautious, but their objective is the same: the maximum profit possible.
Taking these elements into consideration and knowing the news that surrounded the crypto world this week, the movements occurred. Consequently, Bitcoin whales intensified shipments to exchanges to strengthen a downtrend that allows them to buy more coins. At least that is the most insistent interpretation shown by the data.
The movements of the great whales in figures
For the past few weeks, the trading volume of Bitcoin whales, and all investors in general, has been low. However, last week it increased greatly, particularly in the case of whales. But it was this week that there was a striking increase in transactions. Among them, those tending towards possible sale predominated, which increased the gap over cumulative transactions.
In this sense, of the 166,955 bitcoins that were traded in the last 7 days, 112,031 were sent to the CEX, that is, for possible sale. As the illustration above expresses, this represents no less than 67.1% of all coins moved. As far as accumulation transactions are concerned, they occupied just 33.2% of all coins or 54,408 BTC.
This is a further increase in the gap between possible liquidation (downward pressure) and accumulation (upward pressure). It should be noted that the widening of this gap has been progressive in recent weeks. For example, compared to the previous week, 61.5% (possible sale) and 34.7% (accumulation) were registered. These figures were produced on a total of 111,696 coins moved that week.
With this it is established that the Bitcoin whales intensified their shipments to the CEX with the intention of lowering the price. Other factors also played a role in the movement of the value.
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