Breaking Bitcoin Whales Switch To Buying Amid ‘extreme Fear’

On-chain data reveals the number of Bitcoin whales have been increasing since the start of October.

The number of Bitcoin whale wallets has spiked as the crypto markets struggled this week, with Bitcoin sinking as low as $89,550 on Tuesday.

Data from the crypto analytics platform Glassnode shows that whales have been accumulating since late October, with a notable spike in the number of Bitcoin whale wallets holding above 1,000 BTC starting Friday.

Whale wallets’ numbers fell to a yearly low of 1,354 on Oct. 27 — when BTC was trading at around $114,000 — but as of Monday, this number has spiked 2.2% to sit at 1,384, in levels not seen in four months.

At the same time, Glassnode data indicate that holders with 1 BTC or more have been feeling the pressure of the recent price slump.

The total number of these wallets has decreased from 980,577 on Oct. 27 to hit a yearly low of 977,420 on Nov. 17.

This data contradicts a recent narrative around “OG dumping,” which argues that older investors have been driving the price of Bitcoin down lately by taking profits. Commenting on these dynamics, 10X Research‘s Markus Thielen told Cointelegraph that there is some whale selling still going on, as he stressed that Oct. 29 FOMC meeting from the US Federal Reserve has had a huge impact on what we are seeing now.

“His message decisively broke the fragile balance that had existed between market sellers and buyers – between the OG mega whale sellers (1,000-10,000 BTC) and the whale buyers (100-1,000 BTC).”

“Super-whales and mega-whales are absorbing some of the whale selling, but the 30-day net-flow ratio between these cohorts still shows decisive net selling,” he added.

Bitcoin dipped below a crucial psychological level on Monday, and is currently trading at around $89,900. This has seen the Crypto Fear & Greed Index drop down to the “extreme-fear” zone with a score of 11 out of 100.

Source: CoinTelegraph