The number of crypto whales, individuals or entities holding large amounts of cryptocurrencies, has dropped significantly despite increased activity in the crypto market. According to multiple reports, the number of Bitcoin whales, or wallet addresses holding 1,000 or more BTC, hit its lowest level since August 2019, dropping by 8% since the beginning of February.
Crypto analytics service Glassnode reported that there were only 2,027 whales on Sunday, February 19, which was the lowest level since August 5, 2019, when they numbered 2,023. At current prices, owning that much Bitcoin represents a significant amount of wealth, but it seems that these whales have been taking profits and reducing their holdings.
The drop in the number of Bitcoin whales has been attributed to whales selling off their assets after a brief dip in prices in March. In contrast, they were strong buyers at the beginning of the year. However, as the market has recovered, they have started buying back in.
Santiment, a market intelligence platform that tracks on-chain and social metrics for more than 2,500 cryptocurrencies, reported that over the weekend, the number of Bitcoin whales holding hit its lowest since August 2019. In addition, they highlighted Bitcoin whales’ activities, with a chart showing that they transferred $98.6 million.
The drop in the number of crypto whales is seen as an indication that they are taking profits and reducing their exposure to the market. This could be a sign of caution and uncertainty about the future direction of the market.
Despite the drop in the number of crypto whales, long-term holders and retail investors continue to accumulate cryptocurrencies. Cryptocurrency hodlers have grown consistently regardless of price volatility, even managing to increase through the recent correction and the steep crash experienced in March 2020.
Overall, while the drop in the number of crypto whales may raise some concerns, the market remains bullish as retail investors and long-term holders continue to accumulate cryptocurrencies. It remains to be seen how the market will react in the coming weeks and months, especially with increasing regulatory scrutiny and growing competition from other asset classes.
