Bitcoin Whale Activity Mirrors Start of 2022 Bear Market, CryptoQuant Says
Summary
- CryptoQuant said Bitcoin whale holdings and trading volume are declining in a pattern similar to the early 2022 bear market.
- The report said Bitcoin holdings by long-term holders (LTHs) have reached a record of about 15.8 million BTC, signaling that new capital inflows may be slowing.
- Market watchers said outflows from US spot Bitcoin ETFs, lower trading volumes, and a wait-and-see stance among institutional investors are affecting investor sentiment.
Forecast Trend Report by Period
Recent Bitcoin whale activity is tracking patterns seen at the start of the 2022 bear market, according to an analysis that has sharpened market focus on whether fresh capital inflows are slowing.
Crypto-focused media outlet Decrypt reported on May 28 that on-chain analytics firm CryptoQuant found addresses holding 1,000 to 10,000 BTC have been reducing their Bitcoin holdings over the past year.
Accumulation by so-called dolphin addresses holding 100 to 1,000 BTC has also slowed, CryptoQuant said. The firm added that Bitcoin trading volume among whales has been declining as well.
The report said the pattern resembles the early phase of the 2022 bear market. Bitcoin climbed to about $47,450 in March 2022 before dropping to around $15,742 in November of that year.
At the same time, long-term holders, or LTHs, now hold about 15.8 million BTC, a record high. CryptoQuant said that, too, may signal a slowdown in new money entering the market.
Market watchers say recent outflows from US spot Bitcoin exchange-traded funds, lower trading volumes and a wait-and-see stance among institutional investors have been weighing on sentiment. Some long-term investors, however, are also focused on whether a rise in long-term holders could reduce available supply.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
