Bitcoin price is sinking slowly from highs set over a week ago now, and bullish momentum is showing signs of waning. The peak of the bull market isn’t expected by most analysts for some time, however, a sizable reduction in BTC wallets with a balance of 1K or more coins, could be signaling a bear market is coming sooner than they expect.
Here’s what past history says about this type of whale behavior, and what it might mean for Bitcoin price action in the days, weeks, and months ahead.
The Case Of The Disappearing Bitcoin Whales
The supply of Bitcoin is so scarce, that anytime demand rises, price increases exponentially. It causes the cryptocurrency’s price to bubble, drawing more attention and participants into the decentralized network.
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Even retail investors can have a dramatic impact on price increase, and the effect recent buying from corporations and institutions has had has been nothing short of dramatic. Combined with the asset’s hard-coded block reward halving lowering available supply, a bull market has broken out.
At the height of each parabolic advance, however, long before retail participants and even some institutions begin taking profit, large whale wallets holding 1K BTC or more begin to decrease rapidly.
BTC whale wallets with 1K coins or more are decreasing rapidly | Source: glassnode via Timothy Peterson
According to crypto capital advisor Timothy Peterson, there has been the largest reduction in BTC wallets of …
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