Bitcoin Whales and Sharks Actively Selling as Price Dips, On-Chain Analysis Shows
As the price of the flagship cryptocurrency falls below the $40,000 mark amidst a widespread sell-off in the cryptocurrency market, new data reveals that Bitcoin whales and sharks are actively selling off their holdings. On-chain analytics firm CryptoQuant has analyzed the inflows of Bitcoin into centralized cryptocurrency exchanges and detected significant selling pressure from these large investors.
According to CryptoQuant, the inflows indicate that both sharks (entities holding between 100 and 1,000 BTC) and whales (those holding over 1,000 BTC) are actively participating in the market, contributing to the selling pressure. This shift from retail investors, referred to as shrimps (holding less than 1 Bitcoin), to larger players is noteworthy.
The firm commented:
Following Bitcoin’s surge to $49,000, we are now observing a change in the nature of sellers on the exchange markets. The market, which was previously dominated by retail investors (shrimps), is now being influenced by more powerful holders (sharks and whales), who are currently aiming to realize profits in the exchanges.
Earlier this year, the price of Bitcoin surpassed $49,000, driven by the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States. These ETFs opened doors for both retail and institutional investors to gain exposure to Bitcoin without having to manage private keys. However, CryptoQuant noted that the recent sell-off comes at a time when a JPMorgan research report questioned the impact of spot Bitcoin ETFs on the market.
The JPMorgan analysts, led by Kenneth Worthington, expressed doubts about whether the spot Bitcoin ETFs, which have played a significant role in rejuvenating the cryptocurrency ecosystem, would meet market expectations. They also expressed concerns that any disappointment in ETF fund flows could dampen the enthusiasm that fueled the cryptocurrency surge.
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