Bitcoin (BTC) Whales Behind the Current Slide Below $50,000, Exchange Inflows Spike High

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Bitcoin (BTC) Whales Behind the Current Slide Below $50,000, Exchange Inflows Spike High

After registering over 40% gains just in the last two weeks, Bitcoin (BTC) finally entered a sharp correction on Monday, February 22. The Bitcoin price took a dip below $50,000 levels correcting over 15% from its all-time high.

Although Bitcoin (BTC) has partially recovered from the low, it is still 8.13% down at press trading at $52,126 with a market cap of $968 billion. As per on-chain data provider Santiment, bitcoin whales have been behind the recent correction. Over the last week, the number of whale addresses with a minimum of 1000 BTC dropped ~2% from 2,462 a week back to now at 2416.

Another data provider Glassnode cites a similar observation. It writes that Bitcoin whale addresses holding between 1K-10K BTC were increasing over the last year calling it a ‘whale spawning season’. However, it adds that these addresses have been reducing holdings over the last two weeks. The Glassnode report states:

“Wallets with 1k to 10k BTC holdings in particular have been in a strong uptrend since March 2020, having increased by 14.18% between 12-Mar-20 and 5-Feb-21. This has been referred to as ‘Bitcoin whale spawning season’ as these addresses represent holdings of millions to hundreds of millions of dollars (considering price rallying from $3.8k to $58k in that time). However, over the last two weeks, this wallet class appears to be ‘reducing holdings’.”

Courtesy: Glassnode

Bitcoin Exchange Inflows Skyrocketed Before Correction

Also, the data provider notes that just as the Bitcoin price surged past $58.3K the exchange inflows spiked significantly for profit booking. Just before Bitcoin’s sharp 16% price drop, the one-hour exchange inflows touched a 16-week high.

Bitcoin price volatility continues to remain high at this point. After a dip below $50K, BTC quickly recovered over 10% from the bottom, however, it failed to breach the $55K level and is once again under major profit booking to its journey south.

But Santimnet notes that there’s still some chance for Bitcoin price recovery with dormant tokens on the move. But social indicators show that there’s a major lack of “buy the dip” calls. Also, the Bitcoin network’s other indicator for ‘Realized Profits or Loss Metrics’ showed signs of crowd overconfidence.

Interestingly, another data from Glassnode shows that we might have entered the next consolidation cycle and Bitcoin will see a strong support at $48K.

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Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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