A recent report by Bitcoinist highlighted a worrying trend among early Bitcoin investors that could explain why the price of the cryptocurrency remains in a perpetual decline. According to data from on-chain data analytics platforms, These early Bitcoin whaleswho own thousands of bitcoins, began selling their large stash. But even after a month of relentless dumping, it appears these big investors are still far from finished, and there could be more pain to come.
Bitcoin whales dump billions of dollars into the market
As a Bitcoinist report showed, two Bitcoin whales began moving their holdings to centralized exchanges in October. This selling continued into the new month, and by the first week of November, these two whales had sent over 16,000 Bitcoins to exchanges. In total, the value of Bitcoin reached over $1.7 billion, demonstrating the significant selling pressure that Bitcoin faced at the time.
After that initial sell-off at the beginning of November, there appears to be a… Slowdown in salesbut this did not last long. Lookonchain on-chain data platform I mentioned The whales are back at it again, and this time one of the whales is back and appears to be selling the rest of his possessions.
Bitcoin OG Owen Gunden is at the center of all this selling, as he recently moved the last of his large Bitcoin holdings to a central exchange. In total, Gunden sent 3,549 BTC worth $362.84 million at the time of the transaction to the Kraken exchange, having previously sent 600 BTC worth $61.17 million. In total, Gunden sent 11,000 bitcoins worth $1.12 billion to exchanges, presumably to be sold.
Why is selling increasing?
With early Bitcoin whales moving in and creating significant selling pressure in the market, the question was why these investors would choose to sell now after waiting so long. This comes at a time when the $100,000 level is still under threat, and this $1 billion sell-off could trigger a bear market.
While members of the cryptocurrency community search for some deeper meaning in the sell-off, cryptocurrency influencer Udi Wertheimer give Short and precise answer: Organizational organizations simply make profits. These whales bought their bitcoin when it was very cheap and kept their stash for about 15 years. Having grown exponentially since then, with most of them becoming billionaires, it has become so Naturally, these whales sell out And spend their profits.
Instead of asking why whales are selling, Wertheimer explains that what investors should really be asking is “Why doesn’t the price of Bitcoin drop -70% when so many startups are selling?” Given the strength Bitcoin is showing amid the sell-off, the cryptocurrency influencer believes “this is what should keep the bears up at night.”
Featured image created with Dall.E, chart from Tradingview.com
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