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Optimistic BTC whales may have to do more than just accumulate, here’s why…

2min Read

Bitcoin holders start turning bullish as exchange deposits decline. Whale accumulation surges despite a decline in weighted sentiment.

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  • Bitcoin exchange deposits decline as bullish sentiment towards BTC grows.
  • Whale interest in BTC increases, however, short-term holders take their profits and leave.

After rallying for the last three months, Bitcoin [BTC]’s prices have started to experience some volatility. However, the decline in exchange deposits indicated that holders were still optimistic about the king coins’ future.

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Bulls and Bears “exchange” glances

According to data from Glassnode’s, the number of exchange deposits hit a two-year low at the time of writing.

This decline in exchange deposits could be taken as an indication of reduced selling pressure, which may indicate that fewer individuals were keen on liquidating or trading their Bitcoin holdings.

As a result, there could be a possible contraction in the supply of Bitcoin available for sale, potentially driving up the price of the cryptocurrency if demand remains robust or experiences a surge.

Whales were also observed to be showing interest in BTC over the last few weeks. During the weekend, there was a continuous accumulation of Bitcoin by the whales, with each whale’s supply exceeding 530 BTC for the first time since the FTX collapse.

Whale accumulation may indicate a bullish sentiment and potentially drive up prices in the short term. However, a high concentration of whale holders could make retail investors vulnerable to sudden whale behavior in the long run.

Source: Glassnode

Despite the high whale interest, the prices were yet to budge in a positive direction. One of the reasons for the BTC’s price decline would be the behavior of short-term BTC holders. These short-term holders bought the local top where BTC’s prices were more than $30,000 and sold at a loss.

Source: Glassnode

It is yet to be determined whether long-term holders would engage in similar behavior as prices of BTC start to surge.

Read Bitcoin’s [BTC] Price Prediction 2023-2024

At press time, the weighted sentiment toward BTC started to decline. Coupled with that, the active addresses on the BTC network also witnessed a fall. This decline in activity on the BTC network may act as a hurdle in BTC’s growth in the future.

Source: Santiment


Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
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