According to a new report from Glassnode, Bitcoin whales unloaded their enormous amounts of BTC in February after accumulating the leading cryptocurrency for months.
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Bitcoin whales dump huge amounts of BTC
Glassnode defines any address holding between 1,000 BTC and 10,000 BTC as a “whale,” while “humpback whales” hold more than 10,000 BTC. The report noted that the number of whales has increased by more than 14% this year through February 5th, 2021.
The buying spree of whales and humpbacks peaked in January when they scooped up 80,000 BTC, which is equivalent to about $3.84 billion at the current Bitcoin rate.
Since February, however, the whales and humpbacks appear to have realized large amounts of profits through Bitcoin sales. In total, they are said to have shed 140,000 BTC, equivalent to $6.72 billion since the beginning of the month.
“Smaller” large investors show themselves to be grateful buyers
The data shows an inverse correlation between the trading activity of whales to smaller, but still very wealthy investors. Glassnode found that “dolphins” and “sharks” (wallets holding between 100 BTC and 1,000 BTC) sold 95,000 BTC worth $4.56 billion in January, but reversed course in February, buying a combined 117,000 bitcoin ($5.61 billion) since the beginning of the month:
It is important to note how the supply changes for the Dolphin/Shark class (purple) and the Whale/Humpback class (green) are reflected in volume and shape. Where one class sees increasing volume, the other sees decreasing volume (and vice versa).
“Octopus” and “Fish” wallets, which hold between 10 BTC and 100 BTC, have consistently shed their holdings since November 2020, selling more than 128,000 bitcoin worth $6.14 billion in less than four months.
However, fears of a major downtrend are currently low. According to a research report by trading platform CrossTower, it is argued that institutional buying will keep the Bitcoin price above $50,000 in the long run. The future will show the truth of this statement.
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First published in CRYPTOMONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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