New Data Shows Whales, Who Bought Bitcoin in 2018 and Early 2019, May Sell their BTC holdings
New data shows that Bitcoin whales who bought Bitcoin in 2018 and 2019 are willing to sell their holdings. However, it is uncertain that it will pour a bearish impact on cryptocurrency markets.
According to data published by Whalemap, Big players who bought Bitcoin in the range from $4,000 to $6,000 have moved their BTC holdings.
Movement of “Smart Money”
Researchers at Whalemap claim that the movement of BTC holdings on the part of whales shows they are going to sell these funds. They have shared a graph in which red bubbles represent those whales who have moved their funds or the “smart money.”
“Red bubbles show locations at which hodlers originally held their BTC before transacting it. So imagine you bought bitcoins at the $20k peak and yesterday you decided to send them to an exchange for instance. In this scenario – red bubble at 2017 peak will appear. Bubbles also show data from yesterday – so all the HODLer transactions that are displayed in our latest tweet happened yesterday. Looking at the bubbles themselves, one way how we interpret them is that possibly whales or most likely smart money has moved,” researcher at Whalemap stated.
Possibility of OTC Deals
It does not mean that they have moved funds only to sell on cryptocurrency exchanges but other possibilities are also possible. They can also rearrange holdings in different cold wallets. There are other possibilities as they can also make over-the-counter (OTC) deals. Cold wallets are employed by big and small investors to store funds due to the secure nature of wallets. Whalemap researchers further stated:
“Usually, this type of HODLer transactions are HODLer—>exchange. Sometimes though, it could be OTC deals or exchange cold wallet rearrangements Here is also a couple of tweets where we were seeing similar activity from HODLers and CryptoQuant guys were noticing weird activity happening as well. Later it turned out that it was indeed OTC deals happening (possibly could have been Microstrategy. And yeah, smart money moving is usually bad for price.”
As whales bought Bitcoin at very low rates, from $4,000 to $6,500, they can earn a lot of profit by selling these funds. If they are determined to sell through exchanges, selling pressure may affect cryptocurrency markets.
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