Following the latest Bitcoin short-term price rally, it appears whales are back in action, accounting for significant transactions likely to sway the asset’s value.
Notably, on-chain activity indicates that the world’s largest non-exchange Bitcoin whale has sold about 46,000 BTC in two days valued at $1.08 billion based on the press time Bitcoin price of $23,500, data by Bitinfocharts indicates.
The transaction was first initiated on July 18 in a series of sales that initially offloaded $15,500 BTC. The first notable transaction saw the sale of 500 BTC, then 2,500 BTC in the second and third, and 5,000 BTC in the fourth and fifth transactions.
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As of July 19, the whale had accelerated the Bitcoin offloading with two transactions of 10,000 BTC and 20,000 BTC on July 20. After the transactions, the whale has a balance of 71,381.898 BTC.
Motivation behind the Bitcoin sale
Generally, the Bitcoin community will be looking for the motivation behind liquidating a huge amount of the asset, considering that activities by whales tend to influence the asset’s price.
Notably, selling Bitcoin by whales sometimes acts as bearish momentum for the assets, an indicator that the current ability to stabilise above $20,000 might be short-lived. Despite the crypto market correction, offloading the Bitcoin resulted in the whale making profits.
Due to the anonymous nature of Bitcoin addresses, it is likely the whale is an early Bitcoin adopter who purchased the asset at cheaper prices. Similarly, the need to generate capital might have triggered the liquidation by the anonymous holder.
Impact on whale concentration
Worth mentioning is that the general cryptocurrency market meltdown has impacted the whale concentration in recent months. As reported by Finbold in April, the number of Bitcoin whales had fallen around 5% in just four days. The drop was followed by further Bitcoin price decreases that tanked below $20,000 at some point.
Furthermore, 16 Bitcoin whales also sold their Bitcoin within that week in April, when the asset needed large holders to help propel the price upwards.
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