Little by little the end of the year is approaching. During these first days of October, Bitcoin (BTC) managed to increase almost US $ 10K. In that sense, we wanted to analyze the activity of the whales this week and the influence they may have had on the performance of the cryptocurrency. For now, the Whale Alert reports seem to indicate that the whales slowed down the accumulation of BTC. Why? Let’s see.
Bitcoin whales are said to have the power to influence the market depending on what they need at any given time, by how large they are. However, this is not as simple as many might think, since many of these bulky addresses belong to exchanges or groups of investors. This, however, does not eliminate the possibility that there may be strategies inclined to manipulate the market in a certain way.
Bitcoin’s price range has hovered between $ 54,400 and $ 56,753 in the last 24 hours, according to CoinDesk. Meanwhile, Bitcoin whales maintain trends that we want to show you, especially when it comes to slowing down accumulation. In this scenario where Bitcoin tries to get closer and closer to 60K, we can speculate on what the whales could do next with their tokens and for this, we analyze their activity in this beginning of October.
Know the detail of the activity of the Bitcoin whales this week. Source: Whale Alert
Bitcoin whale activity: is there a selling trend?
The first thing to highlight is that in the last week, the whales mobilized a total of 87,916 BTC through 65 operations. The predominant trend in terms of BTC mobilized was the transfer between unknown wallets. This is because 38,200 BTC went from unknown wallets to others. The above is equal to 43.45% of the weekly total.
The second most marked trend so far has been the introduction of liquidity to the market, with a total of 24,741 BTC transferred from unknown wallets to exchanges. The latter is equal to 28.14% of the total accounted for.
Likewise, the accumulation by the Bitcoin whales was evidenced, with 13,633 BTC transferred from exchanges to unknown wallets (15.51% of the weekly total). This indicates that accumulation is not the priority of the whales particularly at the moment, thanks to the fact that BTC finally had a considerable increase that could be used to recover profits in the short term.
Finally, we must say that transferring between exchanges was the weakest trend. Thus they mobilized 11,342 BTC (12.90% of the weekly total). From all the above it could be said that the whales are interested in selling their tokens at current market prices. The accumulation of previous weeks may have been influential, in part, in what happened these days.
Some analysts attributed the overall increase this week to Chinese buyers. These returned after the market settled following the initial news of the cryptocurrency ban in China.
“It appears as if the return of Chinese participants will provide some fuel to the recent BTC fire, pushing prices temporarily above $ 56K.” This was said by Armando Aguilar, Vice President of Digital Asset Strategy at FundStrat Global Advisors. “There was a similar sentiment of risk in the Chinese equity markets, with the Shanghai Composite closing 0.67% higher on its first day back to trading after the holidays.”
Likewise, investors are increasingly eager for a futures-backed Bitcoin ETF to be approved in the United States. An ETF would provide an easily accessible way for more retail and institutional investors to get involved in cryptocurrency. Some analysts point to the growing gap between BTC futures and spot prices as proof of this optimism.
The number of new BTC addresses has also been trending up since Q2. Nearly 480,000 new Bitcoin addresses were created on October 5, the highest number since May 13, according to Coin Metrics.
A special event
According to CoinDesk’s Muyao Shen, last Wednesday a buyer or group of buyers placed an order on a centralized exchange to buy $ 1.6 billion in bitcoins. To put it in perspective, it is about 4.5% of the average daily volume in the bitcoin spot market for the last two months. That amount of supply that hits the market in less than five minutes is a lot for a single exchange (or three).
Consequently, the price of Bitcoin almost immediately shot up 5% to $ 55,500. A buyer with a long-term perspective would be more careful if the goal was to enter at the best possible price. Some data could summarize the most interesting of this event:
The price of Bitcoin on Coinbase, compared to other exchanges, rose a lot while the trade was taking place, leading some to speculate that this exchange was where the transaction took place. However, a little more research into the data places the operation in Asia. Three exchanges saw particularly large volumes in their perpetual futures contracts, according to Ki Young Ju, CEO of CryptoQuant. These three exchanges – Binance, Huobi and ByBit – while not technically based in China, have long-standing ties to China. Ki hypothesized that a possible explanation could be that traders took large positions before rumored approval by part of the US SEC of a futures-based Bitcoin exchange-traded fund (ETF). The rumor hit the market after the regulator’s chairman Gary Gensler simply reiterated his stated preference for a futures-based ETF should one be launched. Chinese companies in the real estate sector with funds in USDT that wanted to get rid of this cryptocurrency, and quickly exchanged it for BTC. But for sure, the origin is unknown. However, the effect was noticeable.Final comments
As can be seen, the whales did influence the price of Bitcoin, but the expectations of the creation of the ETF are also a considerable factor. Either way, we invite you to stay tuned for our next updates.