Unprecedented Rise in Bitcoin Whale Wallet Holdings
Bitcoin has experienced a recent downturn, with prices dropping below $70,000 as bears maintained their control. This has resulted in a decline of over 4% in the past week, with Bitcoin trading around $66,000 currently.
An interesting trend has emerged as wallets holding 10 or more BTCs have reached their highest levels in the last two years. This surge in whale wallet holdings indicates a significant shift in the market dynamics, potentially leading to a more accurate reflection of demand without the influence of FTX.
Whale Wallets at Levels Similar to Pre-FTX Collapse
Recent data from Santiment reveals that bitcoin’s price has surged by an impressive 226% during this period. The collective holdings of wallets with 10 or more BTC stood at 16.16 million BTC, constituting 84.8% of the total supply back in June 2022.
- Wallets holding 10+ BTC now possess 16.16 million BTC, representing 82% of the total bitcoin supply as of June 2024.
- Speculation has arisen regarding the impact of Sam Bankman-Fried’s activities on crypto prices post-FTX collapse.
- A noticeable correlation exists between increased holdings of the 10+ BTC wallet group and BTC’s market value.
Revelation of Manipulation in the FTX Trial
The FTX trial last year shed light on a massive bitcoin sell-off orchestrated by former FTX CEO Caroline Ellison. She alleged that Sam Bankman-Fried, the disgraced founder of FTX, collaborated with her to manipulate bitcoin prices, ensuring they stayed below $20,000 through customer funds.
Ellison presented a document during the trial that explicitly instructed, “Keep selling BTC if it’s over $20k,” providing evidence of the manipulation scheme.
Experts and industry insiders have speculated that the failure of bitcoin to reach $100,000 during the 2021 bull market was a consequence of this artificial sell pressure exerted by FTX executives.
The Aftermath of the Alleged Manipulation
Since the collapse of FTX in November 2022, a clear connection has emerged between the holdings of major Bitcoin whales and the overall market value of BTC. This correlation indicates that without the influence of FTX, whale wallet holdings have become a more accurate indicator of market direction.
Previous forces that may have distorted the relationship between large-holder transactions and market prices seem to have subsided, allowing the market to reflect the true demand more effectively.
Hot Take: Reflecting on Bitcoin’s Future
As a crypto enthusiast, it’s essential to stay informed about the dynamics influencing the market. The surge in whale wallet holdings and the correlation between their transactions and market value highlight the evolving landscape of Bitcoin. Transparency and accurate reflection of demand are crucial for a healthy and sustainable market.
Continued monitoring of whale wallet activities and their impact on price movements will be vital in understanding Bitcoin’s future trajectory. Stay tuned for further developments in this space as the market continues to evolve.
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