The waters of the Bitcoin blockchain are deep. Many sea creatures cavort in them: shrimps, fish, sharks – and whales. The on-chain data service Glassnode classifies investors with over 1,000 Bitcoin (BTC) in their digital wallet as the latter.
Whale watching is also worthwhile in the Bitcoin space. Because the deep sea inhabitants are considered absolute professionals at trend recognition. If whales withdraw their coins from the exchanges, this is considered bullish – and vice versa.
At the beginning of March, transactions from whale wallets to exchange accounts increased significantly – shortly afterwards, BTC collapsed by several thousand US dollars.
Two wallets related to Binance were also noticeable in this context. 4,000 BTC were moved to hot wallets on the crypto exchange on two days each. And both times the price fell as a result. It is possible that the BTC millionaires cashed out their coins as a precaution in anticipation of falling prices.
Bitcoin Whales: Correlation or Causation?
It cannot be conclusively clarified to what extent the whale songs were actually the cause of the recent price movements or merely represent a trend correlation.
Nevertheless, the ongoing whale movements are a clear sign of the prevailing volatility in the market. Recently, Bitcoin had fallen significantly. At 8.4 percent, the No. 1 cryptocurrency recorded the most significant decline since the FTX debacle.
Overall, whale activity is still quite low compared to current price levels. This is what the analysis platform Kaiko writes.
How much further does Bitcoin correct? Is the BTC market still overheated? In our current Bitcoin report “After Bitcoin overheating: How far will BTC correct?” We have compiled data and statistics that can help you navigate this dynamic market environment.
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