- Trading at around $60,000, Bitcoin looked like it was about to hit a death knell.
- Over $1.7 Billion in Bitcoin Has Been Withdrawn from Exchanges Despite Price Drop
Recently, Bitcoin has seen a significant price decline, falling below $60,000 – a level that has long been seen as a stable and safe range. This unexpected drop has sparked panic in the market, as traders and investors react to the sudden shift.
However, in contrast to the general market response, the large holders, often referred to as “whales,” appeared to be moving in a different direction.
Bitcoin Whales Go Against Market Trend
The recent significant drop in the price of Bitcoin has sparked a range of responses from traders and investors. While many have chosen to sell their holdings in an attempt to lock in profits or cut losses, a notable trend of accumulation has also been observed, particularly among large-scale investors or “whales.”
According to Netflow data from In the massBitcoin saw net outflows from exchanges of more than $1.7 billion over the past week. This is the largest outflow in more than a year, underscoring the significant movement of Bitcoin away from exchanges.
Source: IntoTheBlock
Such outflows are often interpreted as a sign of accumulation, with investors moving their holdings into private portfolios, with the goal of holding them for the long term rather than leaving them on exchanges for potential sale.
What could this mean for the broader market?
This trend indicates that despite the market slowdown, confidence among some investors remains high, with significant buying activity observed as prices decline. These large investors are likely viewing the current price decline as a strategic buying opportunity. They expect the market to recover in the long term.
For the broader market, the large outflows and associated accumulation by whales could stabilize prices or even push them higher again if the trend continues. It is a sign of bullish sentiment among some of the market’s most influential players, which could help ease recent downward pressures.
Bitcoin Balance Trend on Exchanges
An analysis of Bitcoin balances on exchanges, according to Glassnode data, has revealed a significant decline in recent weeks. Despite remaining at the 3 million mark for some time, there has been a sharp decline in the balance held on exchanges.
Specifically, the balance was around 3.057 million BTC on July 30. However, this balance has decreased to around 3.026 million BTC at the time of publishing this report.
Source: Glassnode
This drop in Bitcoin balances on exchanges is in line with the findings of Netflow Analytics over the past few weeks, which have indicated a trend of Bitcoin exiting exchanges.
Such moves are generally interpreted as a sign of accumulation among investors.
MVRV indicator shows a negative trend.
Finally, an analysis of the MVRV ratio chart revealed that Bitcoin’s MVRV over a 30-day period, at the time of publishing this report, was at -3.278%.
This indicates that the average Bitcoin holder over the past month has suffered a loss. This negative value also means that Bitcoin may be undervalued, as holders are holding it at prices lower than the purchase cost.
Source: Santiment
– Read Bitcoin (BTC) price prediction 2024-2025
Historically, such low MVRV levels are often viewed as potential buying opportunities. The chart is consistent with the recent trend of large investors piling into Bitcoin during market downturns.
Overall, this means that current market sentiment may be shifting towards accumulation, in anticipation of a future price recovery.