The largest holders of Bitcoin are jumping ship in panic as inflows touch a new high over 3 months. These whales hold ver a million in cryptocurrencies in their wallets in hope of future profits.
But there has been a rapid decline in the volume of BTC whales and it is presumably owing to the 3-month high inflow of coins to CEXs (centralized exchanges). BTC Market tracker Glassnode has released several gloomy signs.
This includes data that indicates an exit from the market by whales who hold at least a thousand coins, with there being exchange inflows of much over 1.7M coins. This is the highest since February this year. the exchange inflow volume reached a 3-month high of 1,755.021 BTC. The previous high for 3 months was observed on 8 May 2022 (1,729.605).
Such high inflows in the centralized exchange of BTCs suggest that the whales are exiting markets by selling their holdings and are preparing for a long downtrend in the market.
The latest sell-offs most likely were executed through short-term Bitcoin holders. They are believed to have accumulated coins between the end of January and the first weeks of February. Prices then were at a 6-months low at around $34,800.
Bitcoin Feare And Green Index Drops To Eleven
Har data has predicted unfavorable market outlooks. This had led to the Fear and Greed Index of Bitcoin dropping to eleven, which is considered the region of Extreme Fear. This index gives an indication of the general greed or fear among investors in Bitcoin.
Even the low sentiment has not affected the daily transaction volume of Bitcoins. On Sunday alone, 233,892 transactions were recorded with a total value of $30B. This has been the average ever since January.
Analyst Checkmate tweeted his advice telling investors to stick to a plan. He predicted that when the capitulation wick happens for Bitcoin, most will be too panicked to step in and buy.