Over the past year, crypto whales have been selling off BTC. The price of BTC is now 58% below the ATH it reached in November 2021.
Due to its high level of unpredictability, cryptocurrency is not enticing to big investors.
Santiment, a blockchain analytics company, found that over the past year, Bitcoin (BTC) whales have been selling off their holdings of the leading crypto. The study also discusses the whereabouts of this money since May of this year.
Is Bitcoin Too Risky to Keep?
Large institutional investors and enormous whale addresses have reportedly been selling off their Bitcoin holdings for more than a year. They had been in an accumulation period up to the end of last year, which comes after that. Fast-forward to BTC’s price has dropped 58% from its all-time high (ATH), reached in November of last year, one year later. The market is currently watching for early indications that whales may enter the market again. They will drive prices upward after this protracted period of losses.
The fact that significant stablecoin market caps were increasing through May of this year was one-factor giving traders hope. However, it became harder for major holders to defend holding huge sums of dollar-pegged cryptocurrency on the sidelines as FOMC interest rate rises and recession fears seriously affected investors’ speculative decisions.
The volatility has crept into the global financial markets this year. Hence, large institutions and whales likely store their money in the U.S. and worldwide treasuries instead of cryptocurrencies.
The research recommended that traders and investors watch the market capitalization of the biggest stablecoins to see whether they start to rise. Prices for cryptocurrencies should soar if they do start to take up.
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