According to on-chain data, Bitcoin whales continue to reduce their holdings over the past week. This suggests that they may not find the current lows attractive enough.
Bitcoin Whales Still Selling Despite the Recent Lows
A CryptoQuant analyst pointed this out postThe number of investors who have balances in the 1k-10k BTC range has continued to fall.
The relevant indicator here is the “UTXO Count – Value Bands,” which tells us about the number of UTXOs (or wallets) that are currently in each Bitcoin value band.
These value bands represent the ranges in which the balances for UTXOs falling within said bands fall. The 100-1k BTC value range includes all UTXOs or wallets that have 100 to 1,000 coins.
The value band of interest in the current context is the “1k-10k BTC” group. Below is a chart showing how the UTXO Count in this value range has changed over time.
It seems like the value of this metric has suffered a loss in recent days. Source:| Source: CryptoQuant
The graph above shows that the Bitcoin UTXO Count has seen a steep decline in the last month for the 1k-10k BTC price band.
Large balance wallets are often owned by whales. These humongous holders’ holdings have decreased over this time.
This entire latest decline has come following the crash caused by crypto exchange’s FTX collapse, which means whales have sold their coins while the prices have been hitting lows.
As bear markets bottom, whales have been known to accumulate behavior. Recent changes have seen a strange decrease in the UTXO Count for this whale value range.
This trend could indicate that whales may not find current lows attractive enough for them to buy more. Instead, they may be selling off their reserves in anticipation of bearish winds continuing.
BTC Price
At the time of writing, Bitcoin’s price floats around $17.2k, up 1% in the last week. The crypto’s value has fallen 7% in the past month.
Below is a chart showing the trend in coin price over the past five days.
Source:| Source: BTCUSD on TradingView
Bitcoin has been stuck moving sideways around the $17k level recently, but at the moment it’s unclear when some real volatility may return to the crypto.
Featured image by Thomas Lipke on Unsplash.com. Charts and charts from TradingView.com, CryptoQuant.com.