Bitcoin Investors Are Selling: On-Chain Data Reveals
An analyst has shared a chart showing the behavior of different Bitcoin investor groups, indicating that the largest whales are now selling. The chart uses the “Accumulation Trend Score” from on-chain analytics firm Glassnode to determine whether investors have been accumulating or distributing their holdings in the past month. A score close to 1 suggests accumulation, while a score close to 0 indicates distribution or no accumulation.
The chart shows that most investor cohorts were heavily accumulating in late October and November, but some groups dipped into distribution before returning to accumulation during the recent rally. However, the group of investors holding more than 10,000 BTC is now focused on distribution, which could be a bearish sign for the market.
Bitcoin Price
At the time of writing, Bitcoin is trading around $42,400, down 3% in the past week.
Hot Take: Mega Whales Selling Could Spell Trouble for Bitcoin
The recent shift in focus from accumulation to distribution by mega whales—investors holding over 10,000 BTC—could be a negative indicator for Bitcoin’s future. These influential investors may believe that the top of the market has already been reached and are choosing to sell their holdings. However, other investor groups, including whales with less than 10,000 BTC, are still accumulating. It remains to be seen whether the mega whales or these smaller entities are correct about the cryptocurrency’s trajectory.
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