The day of this May 18 was marked by an impressive fall in the price of Bitcoin in a matter of hours, reaching around US$ 38.5 K. Meanwhile, what did the Bitcoin whales do? This is what we will answer next in this daily summary. At the time of writing, BTC is worth US $ 39,577, representing a loss of 12.86% in the last 24 hours. In this scenario where Bitcoin falls, we can speculate on what the whales might do next with their cryptocurrencies and to do so, we analyze their recent activity.
Bitcoin whales in a daily roundup of featured moves, as cryptocurrency falls
The first thing we should note as interesting is that while on May 17 more than 100K BTC were mobilized between unknown wallets, during the 18th there was no operation in this regard. It would be the first time this has happened in months.
Thus, the trend of introducing liquidity into the market would become the predominant one. According to Whale Alert reports on Twitter, of the 11,869 BTC mobilized on this day, 4,985 BTC were transferred from unknown wallets to exchanges, possibly for sale.
Next, the second strongest trend was the transfer between exchanges, for a total of 4,000 BTC mobilized through two operations. This represented 33.70% of the daily total. Finally, the whales carried out four accumulation operations, through which 2,884 BTC passed from exchanges to unknown wallets (24.30% of the daily total).
Admittedly, the activity was quite limited compared to previous days. However, the context may explain much of this caution on the part of Bitcoin whales.
What happened this Tuesday was interesting. On this day ‘extreme fear ‘ seized the Bitcoin market after the price drop, according to the sentiment indicator. This shift in market sentiment came after the BTC price drop last week. There were no variations on this during May 18.
The Crypto Fear and Greed Index, a metric that measures current sentiment in the BTC market, has fallen to levels of “extreme fear” not seen since April 2020. The index is now at 23, below last week’s “greedy” level of 74, according to Alternative’s report and quoted by Arcane Research, a Norwegian analysis firm.
«Last week was filled with fear, uncertainty and doubt, and the price of Bitcoin plummetedArcane analysts wrote. «In the past, an extremely fearful market like this has historically presented solid buying opportunities during bullish cycles». This is probably what we will see soon from the whales that had brought their tokens to exchanges for possible sale.
Other key points about what happened
Another event that can help us understand what is happening is that funding rates in the Bitcoin derivatives market turned negative. That is, funding rates fell below 0% on two separate occasions during the past week.
The first, during the mass sale of May 12. The second occurred on Monday when the market reacted to the latest comments from Tesla CEO Elon Musk on the cryptocurrency. By Tuesday, according to the report, the funding rate had returned to neutral territory.
Arcane also noted that short-term price volatility has risen to its highest level since February. 30-day volatility is now at 4.5%, indicating that the price of Bitcoin has moved 4.5% every day for the past month, on average. In this scenario we recommend caution when trading with Bitcoin, since while the cryptocurrency falls things tend to get a little crazy in the market.