As May progresses, Bitcoin whales made moves for approximately 251,604 BTC via 162 trades. All this according to the reports of Whale Alert that we used to monitor and use. Bitcoin’s performance has been bearish throughout the week, but … is there any mutual influence?
Before continuing we reiterate that this summary is for informational purposes only, and that there are other factors that also influence the Bitcoin market. As a result, we look at Bitcoin whale activity in a broader context.
What have been the highlighted movements of Bitcoin whales this week?
Firstly, the fact that more than 250K BTC have been mobilized in a week is impressive. However, the most marked trend of all was again the transfer between unknown wallets with a total of 135,191 BTC. This is equal to 53.73% of weekly activity, at least in terms of the amount of BTC mobilized.
Next, the most prominent trend or movement during this week was the introduction of liquidity to the market. What happened is that Bitcoin whales carried 48,244 BTC from unknown wallets to exchanges (19.18% of the weekly total). Although the chance that it was for sale is high, it was not necessarily the case.
What is undeniable is that while Bitcoin was facing a clear downtrend, other altcoins may have been more attractive to some whales. Especially those that perhaps seek to generate profits immediately, or in a short term. It also often happens that they sell because they expect a longer fall in the future, and with what they sell at a current price they can repurchase those BTC in the future at a lower cost.
Whatever the case, the fact is that the accumulation was quite behind this week. In that sense, we can mention that 14.64% of the BTC mobilized in this week went from exchanges to unknown wallets.
Finally, we recorded 31,319 BTC mobilized between exchanges, which is equal to 12.45% of the weekly total. This makes it the weakest trend. However, 14 May was the strongest trend, as the summary table shows.
Understanding Bitcoin activity
This week was “bloody” for BTC. What happened is that Bitcoin fell after Elon Musk announced on May 12 that Tesla is discontinuing payments in BTC due to concerns about its environmental impact. Additionally, the company did not deny that it had sold or may sell all of its BTC holdings in the near future. With all this, the picture seems bleak. Proof of this could also be seen in the activity of Bitcoin whales that decreased their accumulation considerably.
But you have to look at the real impact of this with a magnifying glass, at least in the long term. Since Tesla announced that it would accept payments with BTC there was a stir, but the number of Tesla customers excited about paying with Bitcoin was always going to be small or non-existent. Removing that option feels like another PR trick, and a clumsy one too. The economic impact of removing something that almost no one would want anyway is negligible, both for Tesla and the demand for Bitcoin.
However, it is undeniable that there is an effect on the nerves of those who trade in the market. However, once the debate over Bitcoin’s environmental footprint continues and alternatives are found, these Tesla justifications may lose power. But for now, BTC may not recover immediately. At the close of this publication BTC is worth US $ 45,339, having retreated 5.18% in recent hours, according to CoinDesk.
Relate
