Whales Gobble Up 60,000 BTC...Individual Investors 'Sell Off'

▲ Bitcoin (BTC), cryptocurrency whale/AI-generated image

While Bitcoin (BTC) jumped from $63,000 to $78,000, the movements of whales and individual investors went in opposite directions.

According to Benzinga on September 1 (local time), on-chain analytics firm CryptoQuant analyzed data up to August 30 and found that wallets holding more than 100 BTC added approximately 60,000 BTC. In contrast, wallets holding 1-100 BTC sold about 33,000 BTC. Approximately 14,000 BTC also exited wallets holding less than 1 BTC. This suggests that while large holders absorbed the supply, small and medium-sized investors used the uptrend as an opportunity to sell.

A notable point is that whale buying was not concentrated at the lows. As Bitcoin rose, the buying speed of large wallets also accelerated. CryptoQuant analyzed that the August rebound was not simply a surge driven by leverage. However, it pointed out that if Bitcoin fails to surpass $80,000 and the 60,000 BTC secured by whales re-enters the market, the existing interpretation that the supply has been absorbed could lose its validity.

A warning also emerged that short-term follow-up funds are entering rapidly. Michael Nadeau, founder of The DeFi Report, stated that the group that purchased Bitcoin between $56,000 and $66,000 became the largest holding group on August 18. However, since then, about 2% of the total Bitcoin supply has moved from this group to groups that purchased at higher prices. Nadeau interpreted this as a sign that “short-term funds” that entered at the lows are passing Bitcoin on to investors who chased the recent rally.

There is also a difference compared to the bottom formation process in 2022. At that time, holders who purchased Bitcoin around the previous cycle's peak of $17,000-$21,000 continued to accumulate Bitcoin for about 60 days even after becoming the largest holding group. This time, after a change in the largest holding group, a portion of the supply moved to investors with higher purchase price points in just about two weeks. As strong whale buying and the inflow of short-term follow-up funds appear simultaneously, the holding flow of large wallets around the $80,000 mark is considered an important indicator.

[Article Summary]

-While Bitcoin rose from $63,000 to $78,000, wallets holding more than 100 BTC added approximately 60,000 BTC.

-Wallets holding 1-100 BTC sold about 33,000 BTC, and wallets holding less than 1 BTC sold about 14,000 BTC, showing contrasting movements between whales and small investors.

-Approximately 2% of the total supply moved to investors with higher purchase price points, indicating the inflow of short-term follow-up funds.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*