Bitcoin (BTC) is currently down 70% from his historic high, reached in November 2021, while the bear market persists. Under these unfavorable conditions, the distribution rates of BTC from whales and miners seem to have reached their maximum levels. This technique has a habit of increasing selling pressure on market investors.
BTC Whale Migration Peak
According to an official CryptoQuant review of Bitcoin’s on-chain metrics, whale activity is, at best, unpromising. Prior to the drop below the $20,000 support, BTC whale movements became more active, according to the study. August saw the awakening of some dormant BTC currencies. This pattern continued until September.
CryptoQuant launched research on August 11 into transactions involving 1,000 to 10,000 BTC, which had been dormant for more than seven years. The investigation indicated that the funds may have belonged to early adopters of BTC, or they may have been transferred from the defunct Cryptsy. exchange before breach.
Regardless of the circumstances, the coins made their way to exchanges for a potential sale. Some, however, were shipped to unidentified addresses, which may have belonged to mixologists. This movement of whales represents a small portion of BTC reaching exchanges since the BTC exchange reserve appears to be seeing an increase.
Additionally, on September 7, CryptoQuant detected an additional group of whale movements. In 10 days, over 15,000 bitcoins were transferred, with some going to Kraken. These coins remained inactive for more than eight years. These whale moves added additional selling pressure and added to the bearish mood of the current bear market.
Miners are used to selling their properties.
Moreover, the involvement of miners in the sellouts has contributed to this pressure. This week, Beijing-based Poolin mining pool made a large withdrawal of nearly 5,000 BTC. Poolin had to stop withdrawals four days ago, citing liquidity difficulties. According to the notice, withdrawal requests had increased significantly.
Recent miner sales may be partially related to the low hash rate. As BTC falls to unexpected lows, miners are making less money and the capitulation appears to be an attempt to hedge against further price declines. Unfortunately, the ripple effect of these sales increases the selling pressure on other whales and miners.
Since late August, the BTC exchange reserve metric has seen a significant increase. Since hitting a four-year low in June, BTC reserves on exchanges have steadily risen, signaling increased selling pressure.
BTCUSD chart. Source: Trading View
Despite these unfavorable numbers, Bitcoin recently recovered psychological support above $20,000. As of this writing, the asset is trading at $19,669, down 9% in the past week.