In more than worsening market conditions, the number of large bitcoin wallets which is in freefall. This may be an additional indicator of a longer-term downturn.
Continuous fall for many weeks
For many weeks, the number of “whales”, whales in French, that is to say the big wallets in Bitcoin here, is constantly falling. The blockchain data analysis site Glassnode tells us that their number is back to a low level, close to that of the beginning of the year.
Bitcoin has lost almost 20% of its value in the last 7 days in the context of a degraded market. Uncertainty over traditional markets, especially due to the war, inflation or even the health situation in China, dominates stock market assets and, more importantly, cryptocurrencies down. Bitcoin even went back, for a short time, to a price of less than $ 30,000. This support in particular is closely monitored by the entire encryption ecosystem.
The beginning of the bear market?
As a corollary to this decline in whale numbers, we see the “volume of exchange inflows” reaching its highest level in almost 3 months. This data relates to the sale of bitcoins on the platforms at most wallets.
This may thus indicate that the whales sell their bitcoins where to bear market. The Index of Fear and Saint, which makes it possible to achieve market sentiment, from fear to greed, towards zones of fear. Thus the indicators are rather red for the king of crypto-currencies.
These various signals, added to the fears raised by the UST depeg, do not inspire optimism for some analysts. However, some of them emphasize the good resistance despite all things crypto-currencies and Bitcoin in this uncertain period and be optimistic about the future. However, the predictions seen a few weeks ago, especially from Goldman Sachs, regarding the $ 100,000 price of Bitcoin are becoming increasingly rare…
It is difficult to know whether this downward movement is the beginning of a bear market or a new correction before a major replay as we have seen before. Market situation that reminds importance have a long-term plan and vision if we want to avoid suffering too much!
We also remind you that if you want to take advantage of the decline in crypto purchasing, you need to go ahead on a secure platform like eToro.