Bitcoin Whale Holdings Have Reached Their Lowest Level in Six Years

Interesting data from on-chain data analytics platform IntoTheBlock shows that the aggregate amount of Bitcoin held by whales has dropped to levels last seen in 2019.

Bitcoin (BTC) whale holdings have reached their lowest level in six years, according to on-chain data analytics platform IntoTheBlock.

The aggregate amount of Bitcoin held by whales has dropped to levels last seen in 2019, Interesting data from on-chain data analytics platform IntoTheBlock shows that the aggregate amount of Bitcoin held by whales has dropped to levels last seen in 2019.

This decline comes at a time when Bitcoin is struggling to maintain momentum above $90,000, with most of the past week’s trading occurring between $85,000 and $90,000.

Image From X: IntoTheBlock

The decline in Bitcoin’s price has been attributed to several factors, including the recent setbacks in the U.S. efforts to approve a spot Bitcoin ETF and the overall bearish trends in the broader cryptocurrency market.

However, the decrease in whale holdings might add to the worries about the crypto asset’s ability to recover and post gains in the near term.

Breaking Down The Data

The transaction metrics from IntoTheBlock follow addresses holding at least 0.1% of the total circulating supply of the cryptocurrency.

Out of the past seven days, there’s been a 85.78% drop in the netflow of Bitcoin among these large addresses, while over the past 30 days, the decline stands at 70.22%. A sharp reduction in whale accumulation often signals diminishing confidence among major investors, leading to fears of increased selling pressure.

At present, the total number of BTC held by whale addresses has reached its lowest point since 2019, highlighting a significant shift in the distribution of coins among large holders.

What This Means For Bitcoin’s Price Amid Market Struggles

At the time of writing, Bitcoin is trading at $86,115, reflecting a 0.5% decline in the past 24 hours and a slight 0.2% drop over the past week. This relatively small movement suggests that Bitcoin has entered a consolidation phase at this level, as buying and selling pressures appear nearly balanced. Throughout the past week, bulls attempted to push Bitcoin above the key $90,000 resistance level, briefly succeeding on multiple occasions. However, sellers have repeatedly regained control and dragged the price below this threshold. The recently launched US crypto reserve has failed to add much to the bullish momentum, with crypto participants seemingly discouraged by the specifics of the reserve. This is the trend relayed in the amount of whale holdings. If whales continue offloading Bitcoin rather than accumulating, the supply dynamics could tilt against a strong breakout above $90,000. As such, there’s the possibility of a deeper pullback towards lower support levels at $82,000 and $78,000 again this new week.

Adding to these concerns, crypto analyst Ali Martinez pointed out a technical development. As noted by the analyst, there’s been a crossover between the 50-day and 100-day moving averages on the daily candlestick timeframe chart. This crossover has seen the 50-day moving average crossing below the 100-day moving average, making it a death cross with downside risks if Bitcoin fails to attract fresh buying interest.

Image From X: Ali Martinez