Following a dramatic market turnaround in the previous week, which witnessed Bitcoin plunge from all-time peaks, investors and commentators are now looking at international giants and traders to determine BTC’s next step — and the response has been distinctly mixed up to this point.
According to statistics from on-chain analytics company Glassnode, the quantity of Bitcoin whales — wallets of 1,000 to 10,000 BTC — has at least momentarily halted what was recently a clear increase beginning in April 2020, a phenomenon which is dubbed “end of whale spawning season.”
Nevertheless, according to the Glassnode site, a major part of the downturn may be traced to the redesign of custodial accounts. Even if the real number of coins in whale accounts suggests differently, if any of the decrease is attributed to custodians shifting coins into cold storage, there’s a possibility it might be an indication of more BTC shifting into whale possession. As a consequence, attributing the fall in whale wallets to panic selling amid cryptocurrency and global market volatility could be challenging.
In the meantime, miner outflows show a much more clearly optimistic scenario.
Moskovski Capital CEO Lex Moskovski stated in a recent post that Bitcoin miners — a regular trigger for price rises and the boogeyman of cryptoTwitter — have started collecting coins rather than marketing:
In terms of institutional development, there seems to be positive news as well. The quantity of BTC in exchange wallets keeps falling, according to Ki Young Ju, CEO of CryptoQuant, which he predict the continued institutional interest:
Latest analysis shows, nevertheless, that the entities hoarding Bitcoin do not have as much of an effect on the value as previously believed. Furthermore, signs say that retail mania has only just started, suggesting that the recent selloff could just be a blip on the radar, and that the next movement will be when FOMO really comes in.
Bitcoin is priced at $46,750 at the time of publishing, falling 2% on the day.