Bitcoin price experienced a major market decline as large investors sold large portions of their Bitcoin holdings.
More than 57,000 BTC were transferred by whales and sharks in recent weeks indicating that Bitcoin will face further bearish market conditions.
Many investors now question the crypto’s future price direction while speculating about the market consequences of this big-scale selling activity.
Massive BTC Sell-offs by Whales and Sharks
Data from Santiment indicates that Bitcoin holders classified as both whales and sharks conducted extensive asset liquidations within recent times.
Whales who hold between 100-1000 BTC, sold over 50000 BTC in the last week worth some $4.07 billion at the current rate.
This sell-off remains significant since whales own a majority of Bitcoin with approximately 22.95% of the circulating coins.
Additionally, the shark category comprising Bitcoin holders with assets between 10 and 100 BTC have reduced their Bitcoin supply. Shark wallets conducted Bitcoin sales totaling 7,062 BTC worth $567 Million throughout the period.
Consequently, the total value of Bitcoin sold by these major holders reached more than $4.56 Billion during one week.
The selling pressure created by investors contributed to Bitcoin price drop to $76,000 during this period. Massive selling activity in the market maintains the crypto’s downward price trend.
Bitcoin Price Decline and Bearish Momentum
More so, Bitcoin price followed a downward trajectory as cryptocurrency prices dropped by 14.7% during the last 30 days.
Market performance reports indicate a 7.3% dip in the last 7 days and a 1.6% decline in the 24-hour. The price momentum remains bearish as shown by performance data over the past month.
Hence, the combination of falling prices and extensive whale and shark selling indicates investors might be losing their optimism.
Bitcoin has historically suffered from market volatility but recent long-term value decreases have caused increased apprehension among trading and investment communities.
Such large-scale selling together with diminished buying signals that market forces are pushing prices lower.
Bitcoin Large Holder Netflows and Reduced Activity
Meanwhile, the sell-offs by whales and sharks are accompanied by substantial network activity variances that IntoTheBlock data shows.
The Bitcoin network experienced 3.58% less activity over seven days which indicates a decrease in trading behaviors between Bitcoin users.
An examination of the Bitcoin ecosystem shows reduced user activities through the 7-day Active Addresses Change dropping by 6.68%.
A notable shift occurred in the movement of cryptocurrency assets between large holders.
The netflow measurements of large wallets experienced a substantial increase of 1,213.40% during the last week possibly representing brief whale-driven accumulation activities.
However, the long-term 30-day and 90-day data sets present an opposite perspective.
The 30-day netflow decreased by 3,814.02% while the 90-day netflow diminished by 1,172.76%, indicating Bitcoin departure from large wallets over an extended period. This prolonged Bitcoin outflow from large wallets explains the Bitcoin price decline.
Bitcoin Price and Demand Appears Stagnant
According to CryptoQuant CEO Ki Young Ju, Bitcoin demand appears flat and does not justify classifying the market as bearish.
A chart shared by Ki Young Ju displays how apparent demand rises and falls between positive and negative levels.
Bitcoin price may transform at some point in the future but current stagnation prevents definitive bear market predictions according to Ju.
Nonetheless, the current market trend lacks sufficient stability to validate an enduring negative demand trajectory.
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