While Bitcoin price continues to follow an upward trajectory that has sent it to new all-time highs, surging above $73,000 this week. With this increase, the vast majority of BTC holders are currently seeing profits, and big whales are taking advantage of this to cash in some profits.
Big Bitcoin Whales Sale Coins
Crypto analyst Ali Martinez contacted X (formerly Twitter). part a chart that showed major Bitcoin whales selling some of their coins. These big whales are the ones who have at least 1,000 BTC in their wallets, meaning these whales at the bottom end have at least $73 million worth of Bitcoin on their balance sheets.
As the chart shows, there has been a decline in the total amount of BTC these major wallets hold, and this means they have sold their coins. After the price moved toward an all-time high of $69,000 for the first time in 2021, these whales began reducing their allocation.
Sales started in the month of February and continued into the month of March. During this time, their overall balance has decreased, leading to a decrease in the number of wallets holding more than 1,000 BTC.
As of February, there were approximately 2,150 wallets holding more than 1,000 BTC. However, in March this figure has fallen to 2,040 as the Whales shave off their balance to secure some gains during the rally.
Impact of Whale Sales on BTC Price
Given the size of these wallets, a decision to sell from these wallets can have a notable impact on the BTC price. This is because they can dump a large amount of supply onto the market in a short period of time and if there is not enough demand to absorb it, it leads to a price drop.
Whale selling could be behind the sudden dips that have plagued Bitcoin as it has soared to new all-time highs. An example of this was on Tuesday, March 12, when the price of Bitcoin reached $73,000. What followed was a sudden crash that sent the price to $68,000 before recovering.
So while the whales dumping their assets could have a negative impact on the price, BTC’s performance in response to this sudden crash shows that there is enough demand to meet this supply. In Tuesday’s case, the price would quickly recover and reach a new all-time high of $73,600.
At the time of writing, BTC price still maintains its position at $73,000, up 10.49% over seven days.
BTC bulls reclaim control | Source: BTCUSD on Tradingview.com
Featured image from Techeconomy, chart from Tradingview.com
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