1,384 Whale Wallets Trigger 2.2% Bitcoin Spike as Retail Selling Heats Up
Large, long-term Bitcoin holders are snapping up more of the cryptocurrency even as retail investors are getting out of the market...
Quick overview
- Large Bitcoin holders are increasing their holdings while retail investors are selling in panic during the market downturn.
- The number of wallets holding over 1,000 coins has risen to a four-month high, indicating that long-term investors are buying more Bitcoin.
- Despite the current extreme fear in the market, some analysts believe this could be a unique buying opportunity for long-term investors.
- Market watchers are looking for signs of stabilization, including a potential retest of support levels and reduced selling pressure from retail investors.
Large, long-term Bitcoin holders are snapping up more of the cryptocurrency even as retail investors are getting out of the market in a panic. On-chain data shows a clear shift in how people are using their Bitcoin wallets, with large wallets holding over 1,000 coins growing dramatically during the market’s crash below $90,000.
According to the analytics firm Glassnode, there are now more wallets holding 1,000 or more coins than at any point over the last four months. Those wallets climbed from a yearly low of 1,354 on Oct 27th to 1384 as of last Monday – that’s a 2.2% increase and the highest number in four months. This is all happening even as the market has taken a sharp tumble.
While the big wallets are growing in number, the smaller wallets – the ones that hold just 1 coin or less – have actually shrunk to a yearly low. So, from Oct 27th to Nov 17th, the total number of small holders actually went down to 977,420 – which shows a pretty typical pattern when the crypto market is in a downturn: the inexperienced investors get spooked and sell out, while the whales take advantage of the low prices to buy more.
This switch is actually the opposite of what most people thought was happening – many were convinced the long-time holders had been selling off a lot, but the data shows they’re actually buying. This suggests that big investors are positioning themselves for a potential market bounce.
BTC Slides Below $90K as Fears Intensify
Bitcoin’s crash below the $90,000 threshold has really gotten people spooked – the Crypto Fear & Greed Index is at 11/100, which is deep in the “extreme fear” zone and is actually one of the lowest readings of the year.
Even though the market is looking bleak at the moment, a few people in the know think that the worst may soon be over.
The CIO of Bitwise, Matt Hougan, told CNBC that the current market is actually a “once in a lifetime opportunity” for long-term investors – and that he thinks Bitcoin was the first sign of a broader risk market downturn earlier this month.
Lots of other market watchers are pointing to a few things that might suggest that the market is actually starting to stabilise – things like the fact that sentiment is getting pretty squeezed, that people are reducing their borrowing, and that a lot of the retail investors are actually selling up. This suggests that market pressure is easing.
Some of the key things that analysts are looking out for as the market tries to bottom out include:
- A retest of that $87,700 support zone – which might be where the market finds a bit of a floor.
- A potential short-term bounce driven by some of the longer-term moving averages.
- A reduction in selling pressure as the whales just keep on buying up more and more coins.
If these factors all come together, analysts say we could see the early signs of a market bottom.
The Debate Rages On – What Next For Bitcoin?
On social media, there are loads of people arguing and trying to guess what will happen to Bitcoin next. The co-founder of Gemini, Cameron Winklevoss, reckons this may be the last time we see Bitcoin below $90,000, while some point to the resurgence of “McDonald’s memes” as a sign the market has finally reached peak pessimism.
Analysts like TheCryptoDog warn that volatility will likely persist for a while yet. Still, they think the chances of a near term bounce are actually on the rise – because of some of the support levels that we saw earlier in the year.
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