According to a new report from the crypto market data aggregator, Glassnode, Bitcoin whales unloaded massive amounts of BTC during February.
Glassnode defines any address that holds between 1,000 BTC and 10,000 BTC as a “whale” while “humpback whales” hold more than 10,000 BTCs. The report found that the number of whales increased by more than 14 per cent in the year to 5 February 2021.
Whales and humpbacks’ purchases peaked in January as they snapped up 80,000 BTCs, worth $3.84 billion at today’s prices.
But since February, whales and humpbacks seem to have made heavy profits, putting off 140,000 BTC—equivalent to $6.72 billion since the beginning of the month.
The data shows an inverse correlation between the trading activities of whales and smaller, but still very rich, investors. Glassnode noted that “dolphins” and “sharks”—wallets that hold between 100 BTC and 1,000 BTC sold BTC for $4.56 billion in January, but flipped bullish in February, collectively accumulating 117,000 Bitcoin ($5.61 billion) since the beginning of the month:
“Important to note is how the supply changes for the Dolphin/Shark class (purple) and Whale/Humpback class (green) are mirrored in volume and shape. Where one class sees increasing volume, the other sees decreasing volume (and vice-versa).”
“Octopus” and “Fish”—wallets that hold between 10 BTC and 100 BTC—have been continuously unloading their holdings since November 2020, selling more than 128,000 Bitcoin or $6.14 billion in less than four months.
The 20 percent BTC price crash this week sparked a lot of action for the whales and was headed by a clever whale who managed to cash out $156 million before the dip started on Monday.
Fears of further down-trend may not arise as new research from the CrossTower trading platform argues that institutional purchases will hold BTC above $50,000 in the long term.