Bitcoin Whales Have Been Selling Amid Bearish Market

On-chain data shows the Bitcoin whales took part in significant net distribution in the past month, potentially feeding into BTC's bearish momentum.

Bitcoin whales have been selling heavily amid the recent bearish market, according to on-chain data.

The Supply Distribution metric from Santiment, which tracks the total amount of Bitcoin held by various wallet groups, shows that whale addresses (those holding between 1,000 and 10,000 BTC) have sold a net 30,000 BTC in the past month. At current exchange rates, this equates to more than $1.65 billion in net outflows from these large entities.

The drawdown in the indicator has been particularly sharp in the past couple of days, suggesting that the selloff from these large entities is at least partly responsible for the recent crash.

As noted by analyst Ali in a new post on X, the selloff from the Bitcoin whales is a significant development to watch, as these large holders can have a major influence on the market.

"The Bitcoin addresses with 1K to 10K coins have a material impact on the market due to their large holdings," said Ali.

The analyst adds that the on-chain metric could be used to gauge whether the selling pressure from whales is likely to continue in the coming days.

"It’s possible that more of these holders will feel anxious by the bearish market in the coming days and end up selling some of their bags," said the analyst.

"Thus, the metric could be one to watch in the near future, as further declines on it could spell the elongation of the drawdown for the cryptocurrency."

Bitcoin price has dropped by more than 10% in the past week, falling from highs of around $62,000 to lows of $54,800. The cryptocurrency last traded at these levels in late February, before embarking on a rally that saw it reach highs of nearly $65,000 in April.

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