Bitcoin Whales Dump Huge Volumes, Market Faces Pressure

Bitcoin Whales Dump Huge Volumes, Market Faces Pressure

High-net-worth Bitcoin investors, nicknamed “whales,” have been dumping Bitcoin at an all-time high in recent weeks. The massive sell-off signals that risk aversion is growing among big players and they are pulling out of the market.

According to analysis by CryptoQuant, whales have sold a staggering 115,000 BTC over the past month, worth around $12.7 billion. This is the largest sell-off since mid-2022. The pressure has pushed Bitcoin’s price down, which at one point fell below $108,000.

While the selling has slowed down a bit in recent days, it is still a significant trend that could impact the price in the near future.

Why are whales dumping Bitcoin?

Analysts believe that the main reason is increased caution among big investors. Even as whales retreat, experts like Nick Ruck of LVRG Research are reassuring that this does not mean the market is collapsing. They point out that institutional investors and ETFs are quietly accumulating Bitcoin, which is creating a counterbalance to the whales’ selling pressure.

According to Ruck, this difference in behavior shows that while whale activity can affect short-term volatility, the overall market resilience remains strong. The short-term price direction will therefore depend not only on whale activity, but also on macroeconomic factors, such as the US Federal Reserve’s (Fed) interest rate decision in September.

Is the long-term outlook still positive?

Despite the recent 13% decline from the August all-time high, the correction is still considered relatively shallow compared to past dips. The long-term view on Bitcoin remains optimistic, according to some analysts.

As the analyst noted, Bitcoin’s annual moving average has moved from $52,000 a year ago to $94,000 today, indicating a healthy upward trend.

While the market is going through a turbulent period, the fundamentals appear to be stable and investors should be looking not only at short-term fluctuations but also at long-term trends and macroeconomic events.

*This is not an investment recommendation.

The Coingarage Team