In more than degraded market conditions, the number of large Bitcoin wallets is in freefall. This could be an additional indicator of a longer term downtrend.
A continuous fall for many weeks
For many weeks, the number of “whales”, whales in French, that is to say the large wallets in Bitcoin here, has continued to drop. The blockchain data analysis site Glassnode tells us that their number has returned to a low level, close to that of the beginning of the year .
Bitcoin has just lost almost 20% of its value over the last 7 days in a degraded market context. Uncertainty in traditional markets, in particular due to war, inflation or even the health situation in China, has dragged down stock market assets and especially cryptocurrencies . Bitcoin even reentered, for a short time, a price below $30,000. This support is especially closely watched by the entire crypto ecosystem.
The beginning of the bear market?
As a corollary to this fall in the number of whales, we see the “exchange inflow volume” reaching its highest level for almost 3 months. This data materializes the sale of bitcoins on the platforms by the largest wallets.
This could therefore indicate that the whales are selling their bitcoins in the event of a bear market . The Fear and Greed Index, which makes it possible to materialize the feeling of the market, from fear to greed, finds itself towards zones of extreme fear. The indicators are therefore rather red for the king of crypto-currencies.
These different signals, added to the fear aroused by the UST depeg, do not encourage optimism for some analysts. However, some point to the good resistance despite everything of crypto-currencies and Bitcoin in this uncertain period and remain optimistic about the future . However, the predictions seen a few weeks ago, notably from Goldman Sachs, of a price of $100,000 on Bitcoin are becoming rarer…
It is difficult to know if this downward movement is the start of a bear market or a new correction before a major rebound as we have seen previously. A market situation that reminds us of the importance of having a plan and a long-term vision if we want to avoid too much suffering!