Bitcoin whales are currently selling their coins in droves

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As the current market uncertainty forces whales to sell, so-called shrimpers are seizing the opportunity to accumulate more bitcoin.

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Currently the Bitcoin (BTC) accumulation trend score is flashing zero for whales. That means they’re not getting any more coins, according to data from Glassnode.

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Bitcoin whales sell their holdings (Source: Glassnode)

Glassnode analyzed Bitcoin accumulation trends between April 2020 and August 2022 and identified: Whales have slowed their Bitcoin accumulation this month and are in the deep red. That means they are selling huge.

According to the available data, the price of bitcoin traded mostly in the range of $ 20,000 – $ 25,000 in August.

Research has shown that whales have accumulated medals in four different time periods over the past two years. Bitcoin whales generally mean addresses with more than 1,000 BTC that represent the major holders.

Bitcoin trading tool: the accumulation trend score

The accumulated trend score is used to determine who is currently buying cryptocurrencies. It is a tool used to determine market sentiment, especially among different investors.

The score is based on two factors. On the one hand, an entity’s participation score, which shows the total amount of signals it has. On the other hand, the change in balance, which shows the difference in their holdings over a period of time (usually one month).

The accumulated value is between 0 and 1. When it is closer to 0, it shows the distribution of coins. A value close to 1, on the other hand, indicates the main holders within the network.

The accumulation of shrimp is slowing down

While the whales have stopped accumulating and even selling their bitcoin holdings, shrimp are also buying bitcoin – albeit more slowly.

Bitcoin: Shrimp Accumulation Slowing (Source: Glassnode)

According to the data, Bitcoin addresses have fluctuated between 2 million and 2.3 million addresses this year. Since July, however, there has been a steady decline.

Shrimp are holders who have less than 1 bitcoin in their wallet. In July, on the other hand, the industry saw the highest monthly accumulation of micro-bitcoin holders since 2018, with shrimp buying 60,000 BTC.

The difference between the response of the two groups to the same market conditions shows how they will perceive the situation:

The current market uncertainty has forced Wale to sell their holdings – especially since Federal Reserve Chairman Jerome Powell has promised more “pain” for the US economy.
On the other hand, shrimp consider it the ideal entry point as Bitcoin struggles to break the $20,000-$25,000 range.

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Text credit: Cryptoslate