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The number of Bitcoin whales is at the same levels as in 2020 and here are a couple of reasons behind this phenomenon

According to data from Glassnode, the number of Bitcoin whales has plummeted since the start of 2021, from 2,237 on Feb. 7 to 1,943 earlier this week.

The number of Bitcoin whales is at the same levels as in 2020 and here are a couple of reasons

Obviously, the Bitcoin whale is not very loyal to this market-leading cryptocurrency. As time goes by and BTC is unable to continue its bull run, fewer and fewer people are holding large amounts of Bitcoin in their wallets.

The number of Bitcoin whales has plummeted since the beginning of 2021, from 2,237 on February 7 to 1,943 earlier this week.

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Number of Bitcoin whales over time | Source: Glassnode

Such a drop could be caused by several reasons, but the main causes can come from the two reasons below. First, the drop in Bitcoin price – or at least the slower price trend – makes the whales no longer profitable, which in turn is not attractive enough for whales to accumulate.

Additionally, expectations surrounding a rate hike in the United States make investing in alternative assets like Bitcoin less attractive. Since keeping money in the bank produces higher returns with less risk, many whales and investors do not much with their BTC other than hoarding it potentially escaping their positions in assets. volatile assets and converted to fixed income assets.

And finally, the appeal of alternative cryptocurrencies reporting higher growth is causing the mass movement of funds. Bitcoin Dominance level is currently below 50%, at around 42%. Long-standing assets like Ethereum and BNB are reporting a clear and sustained uptrend, attracting the attention of many investors. However, the DeFi, NFT, and meme projects are the latest trends with ROI similar to the 2017 craze.

The CEO of CryptoQuant believes that many investors can sell their BTC to bet on the price of some Dogecoin clones – like Shina Inu (SHIB), which soared 1700% in the last week and by the huge number. 28600% in the previous month. Of course, this is bad news for Bitcoin. Declining popularity and soaring sales could put further pressure on prices. Pankaj Balani, co-founder and CEO of Singapore-based Delta Exchange maintained this point in a brief statement to Coindesk.

He said:

“The data looks bearish, as it shows a clear trend of whales offloading their holdings.”

However, this is not necessarily an impending scenario. Bitcoin still holds key supports in its bullish channel, and expectations surrounding Taproot and Schnorr’s implementation have kept many in expectation.

You can see the BTC price here.

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