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The number of whale wallets is down 16% since February, Bitcoin price drop leading to risk-off situation?

As the Bitcoin price appears to be recovering from its recent steep drop below $50,000, on-chain data indicates that whale wallets (those with a high net worth) are dwindling to alarming levels.

As Bitcoin price stabilizes, whale wallet could become an endangered species

Bitcoin along with the entire crypto market suffered a series of staggering losses this week following a string of negative tweets from the world’s second-richest man, Elon Musk.

While the price has begun to recover, whale wallets – a funny term for Bitcoin addresses containing 1,000 BTC or more – are still dwindling amid the drop. This shows that the big players are moving into sell-off mode.

According to data from Glassnode, the total number of wallets containing 1,000 BTC or more is more than 2,100 addresses. And this is down nearly 4.7% month-on-month and down sharply from nearly 2,500 in February.

Tracking the behavior of whale wallets is also one of the indicators of possible price movements.

Recently, MicroStrategy bought another 271 BTC, storing it into the company treasury this week, bringing its total BTC holdings to 91,850 – a reserve worth more than $4.7 billion at today’s prices. However, exchange inflows – often a sign that whales and other investors are selling BTC – also hit around 30,000 BTC last week, although experts say the price has managed to withstand the pressure good force.

the-number-of-whale-wallets-is-down-16-since-february-bitcoin-price-drop-leading-to-risk-off-situation

BTC net exchange inflows | Source: Glassnode

However, an important indicator is that the bearish signs are flashing with certainty. An analysis last month showed that whales and sellers have continued to sell off BTC, despite not making a profit from their trades. This could indicate that selling pressure could lead to a BTC drop.

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