As Bitcoin struggles to recover from the painful decline on Friday, on-chain data suggests that high-income “whale” wallets may not be striving in that direction.
Bitcoin (BTC), along with many other cryptocurrencies, suffered a serious loss of value due to the negative posts of Elon Musk, the second richest man in the world.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
Although prices are starting to show improvement, the number of whale wallets (containing 1,000 or more BTC) still continues to decline, signaling that large investors are starting to avoid risk.
According to Glassnode data, the number of wallets containing 1,000 or more BTC is just over 2,100. The number of these wallets, which was close to 2,500 in February, has decreased by 4.7 percent since then.
However, tracking of whale wallets as an indicator of possible price movements may give different signals recently. MicroStrategy, which has been investing in Bitcoin for a long time, recently added 271 BTC to these investments and increased its total savings to 91,850. On the other hand, the number of BTC transferred to stock exchanges, showing that investors are planning to sell, reached 30 thousand last week. Experts think the Bitcoin price still withstands selling pressure well.
One key indicator is unarguably ringing the alarm bells. An analysis conducted last month shows that the whales and sellers continue to sell even though they were unable to profit from their investments. In this case, the selling pressure may cause the BTC price to drop further.