Bitcoin Whales Lose Interest in BTC! Time to Expect Mass-Selling?

Bitcoin whales continue to dump their investments amid growing market uncertainty

Quite recently, Bitcoin fell below the US$20k mark for the second time in a row. The crypto did show some signs of recovery when it stabilized its value near US$21,000. But being one of the most volatile cryptocurrencies in the market right now, the crypto fell drastically, taking down several other major digital assets along with it. The Bitcoin crash destabilized the entire crypto market and eventually, the crypto lost more than 50% of its value since its all-time highs of US$68k in November 2021. Currently, at the time of writing this article, the BTC price is revolving around the US$19k and seems to struggle to maintain and move past the US$20k barrier. The poor price actions of Bitcoin have triggered a major sell-off season in the market, further lowering trading volumes in crypto exchanges. Crypto investors had been quite hopeful about BTC’s movements for 2022, after its bullish price rally in 2021. Instead, the decline in its prices brought down the value of the entire crypto market. It is being reported that Bitcoin whales are the worst affected. Around 80,000 Bitcoin millionaires have been stripped of their ‘millionaire’ status and the case is quite similar for Bitcoin whales too, who seem to have lost all their hopes and are dumping off their investments before facing more financial losses.

The BTC price dived more than 60% this year. Even after being one of the most popular and trustworthy cryptocurrencies in the world, Bitcoin experienced a free fall. Investors keep anticipating whether or not, with BTC’s constantly declining values, the crypto will efficiently and effectively survive the incoming recession. Even though the rising number of wholecoiners does little to support the price of the crypto, it surely does give hopes that the price will rise to regain its lost market value, or at least gain resistance before diving into the deep end. But to make things worse, the increasing uncertainty around the stability of the global markets is also adversely hampering the dominance of digital assets in the economic and financial markets. To add to the wound, Bitcoin whales are dumping their investments and fleeing the market!


Bitcoin Whales Retire with Worsening Market Situations

According to reports, the number of Bitcoin whales has been on a steady decline and is slowly retiring back to the levels of 2022. Blockchain intelligence firm, Glassnode, claims that the volume of exchange inflows has significantly risen. Certain Bitcoin addresses traded around 1,700 BTC tokens, which indicates that whales are quickly selling off their tokens before being exposed to enhanced financial risks.

Bullish investors did try to drive the currency back up around the US$22,000, aiming to aid the token to create an upward price slope. But the crypto ended up losing its support level and dived below US$19k for a brief period of time. Experts believe that if these bear movements cease, then, the crypto might have bright chances to retain back its original market position. As its price continues to decline heavily, some investors are hopeful that Bitcoin’s days might be over and that it is truly dead. Hence, altcoins will eventually take over the market.

There are several reasons why the Bitcoin price is constantly degenerating. For starters, the crypto market is quite closely following the stock market, which is facing its own downturns, given the current economic and financial crises in the market. The US Federal Reserve recently announced an increase in interest rates to curb the incoming inflation. This initiative by the Feds has quite naturally spooked investors who are quite hesitant to put their money on riskier assets like stocks and cryptocurrencies.


Bottom Line

The entire crypto market is suffering. Bitcoin dove deep into the bloodbath and is massively struggling to break past US$21k. But BTC believers are hopeful that crypto will soon regain back its price momentum, which might seem quite unlikely right now, given the current price swings.