Bitcoin is currently priced at USD 8,766.99. This represents a 0.25% drop in a 24 hour period. However, if we see a weekly chart of its fluctuations we will notice that in a few days it has lost USD 1,196.52 in its valuation. All this makes us wonder why this sudden fall happened, and to discover it we will analyze the actions of crypto whales.
Last 24 hours of the Crypto Whales
Following the notifications of Whale Alert, we will notice that so far this day there have been seven transactions with Bitcoin. Of these transactions, five involved movements from exchanges to unknown wallets, thus denoting a certain tendency to accumulation by crypto whales.
The total of these five accumulation transactions is 5659 BTC. In addition, the exchange platform preferred by crypto whales was Binance. It should be noted that the largest of these movements was for 2000 BTC. With this we could deduce that there are those who are playing in the long and medium term, and bet on the influence that Bitcoin halving can have in a few months.
On the other hand, the two remaining transactions are in the opposite direction of the previous ones, that is, they took BTC to exchanges. The total of these sum 1500 BTC.
In order to understand this fall, it is necessary to see the activity of the whales, because there clearly seem to be other factors that are more decisive. For this we can take into account the opinion of Scott Melker, who is a known analyst and crypto trader. In an interview given to CoinDesk today, in the podcast “The Breakdown” he showed some factors that would explain this fall, beyond crypto whales.
In the words of Melker …
Melker highlighted some lessons we can learn about the crypto market in a week as particular as this one. For him there is nothing particularly surprising in this fall, and he does not consider anything strange in the Bitcoin movement and any cryptocurrency associated with it.
According to the analyst there was a great upward movement, and there is simply a proportional downward movement. This, according to his opinion still falls within the normal range in terms of withdrawal. In addition, this started at a fairly predictable resistance level and said that one week is not enough time to do a concrete analysis of macro trends.
If you want to see in the short term, Melker explains that there was not even so much Bitcoin purchase volume during the week. Also, Bitcoin fell like many other markets, which belies the argument that in times of uncertainty everyone was running to buy BTC.
For this expert, it would be surprising that people opt for a risky asset, at a time when those who are considered safer are falling. After this, he made it clear that this does not mean that Bitcoin has ceased to be an asset unrelated to global markets. What he defends is that simply the correction of the price of the cryptoactive was somewhat predictable.
His opinion is that the fact that the fall of global markets occurred simultaneously that the fall of BTC hurts the argument of the “safe paradise of Bitcoin”, but does not eliminate the lack of correlation between the two markets. According to Melker, they simply coincided with the fall in global markets with the correction of the price of Bitcoin, after a precipitous rise.
Other additional comments
His advice is that everyone should have at least 1% of their money in Bitcoin, put it away and hope they never need to use it, but not because it is the currency of the future. This says it because simply in a hypothetical case of a hyperinflation of the fiat currency in question, Bitcoin not being correlated with the global market could behave in a different way.
Here he mentioned that a case like Venezuela’s Bitcoin is obviously more valuable. “People must differentiate between value and price. For some people in certain situations even if the price of Bitcoin is falling, it will remain a very valuable asset; Venezuela being a great example”Said Melker.
Finally, we can say that the most valid conclusion is that crypto whales and the fall of global markets seems to have no causal relationship with the fall of Bitcoin. But, not on a week-to-week scale, but on a much longer-term basis in a context of “black swan” events.
Degree in Liberal Studies from the Metropolitan University. Lover of innovation and believer of technology for the future.