On-chain data shows that Bitcoin sharks and whales participated in a sell-off of approximately $2.2 billion over the past week.
Bitcoin wallets of 100 to 10,000 BTC sold recently
As analyst Ali pointed out in a job on X, big BTC investors may have recently reaped their profits. The indicator that interests us here is the “BTC Supply Distribution”, which tracks the total amount of Bitcoin held by different wallet groups in the industry.
Addresses or investors are divided into these groups based on the total number of coins they currently hold. For example, the 1-10 coin cohort includes all wallets with a balance of at least 1 and at most 10 BTC.
In the context of the current debate, the range of 100 to 10,000 BTC is the center of attention. The group of 100 to 1,000 pieces is commonly called the “the Sharks“, while the cohort of 1,000 to 10,000 includes the whales.
Both groups hold significant amounts of money, so their behavior may be relevant to the broader market. Although whales are much larger of the two and therefore have much more influence on the network.
Now here is a chart that shows the trend of the combined supply distribution of Bitcoin sharks and whales over the last two months:
The value of the metric seems to have registered a sharp drop in recent days | Source: @ali_charts on X
As the chart above shows, Bitcoin investors from 100 to 10,000 coins have seen their supply suffer a sharp drop over the past week. During this decline, these huge entities sold around 60,000 BTC, worth around $2.2 billion at current asset prices.
This is a notable amount, and given that the timing of the distribution coincided with BTC’s last breakout above the $37,000 level, it would seem possible that these keyholders participated in this huge sale to reap the profits they would have accumulated during the year. rally.
Sharks and whales also participated in some selling when BTC surpassed $35,000 last month, but the rate and magnitude of the selling was less compared to today as the distribution of supply for these cohorts has plunged quite sharply this year. the time around.
However, so far, despite this massive sell-off, Bitcoin has not had much trouble staying around the $37,000 mark. The asset initially saw a pullback when the sell-off began, as it fell back towards $36,000, but it rebounded fairly quickly.
That said, BTC might not be able to break out of its upward sideways move without support from sharks and whales. The aforementioned surge towards $37,000 also occurred right after these investors made huge buying moves.
Bitcoin has continued to consolidate around the $37,000 level over the past few days, as seen in the chart below.
BTC hasn't been moving much recently | Source: BTCUSD on TradingView
Featured image from NOAA on Unsplash.com, charts from TradingView.com, Santiment.net