Whales may start moving after volatility increases in the Bitcoin market
According to the data available By OkLink, the number of large transactions has risen rapidly during the recent sell-off, which may be the first indication of selling pressure emerging from major Bitcoin holders. The indicator provided by OkLink tracks the number of transactions over 500 BTC.
The surge in the number of transactions appeared after a significant drop in the weekend, which is a common practice because traders are mostly active on weekdays. But before facing a drop in transaction activity over the weekend, the index showed another rise on September 14, which may be a reflection of the large transactions on the exchanges made later in the market.
After a 15% sale, more transactions took place at the whale level, but in addition to this, the various data providers on the chain did not show any increased exchange flows, which means that even though large portfolios are selling their assets, institutional investors are not looking to sell their origins.
On-chain indices that track transaction activity on the network in general, such as the Spent Volume Age Bands by Glassnode, have not yet redistributed their assets into the market by old Bitcoin holders. In addition to slowing the distribution of funds and spending rates.
After the massive sell-off that occurred on September 21-22, spending rates did not rise or increase gradually, confirming the thesis about “collective” sentiment among institutional investors.
At press time, Bitcoin is trading at $42,500 with a daily growth of 4.5%. On September 21, Bitcoin reached $39,000 at the moment, but immediately rebounded above $40,000. Trading volumes are still relatively low, as market participants prefer to hold their assets rather than spend them on buying or selling.