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Bitcoin whale reserves correlate with the downward movement in the price of bitcoin, analysts of the Santiment resource noted
Large Bitcoin investors are actively reducing reserves as the price of cryptocurrencies falls. This is the conclusion reached by analysts at Santiment. It is reported that over the past 7 days, the cumulative balance of addresses containing from 100 to 10,000 BTC fell by about 40,000 BTC (~ $ 1.8 billion at current exchange rates).
Santiment believes the decline could indicate short-term profit-taking by some bitcoin whales. The sale also demonstrates uncertainty about Bitcoin’s potential at the end of the year.
“Looking at the behavior of large bitcoin addresses over the past 18 months, it is worth noting that several ‘accumulation periods’ coincided with periods of rising bitcoin prices and vice versa,” analysts said.
Noteworthy were the indicators of the metric of the market value of bitcoin to realized (MVRV 365-d) on an annual basis. It turned out that at the time of writing the material, the metric dropped to negative values (-1.6%).
This is the first time since the end of August that MVRV 365-d indicators have collapsed to negative values. The last time negative dynamics was observed in the twenties of August, when Bitcoin was trading at around $ 45,000. As you can see in the chart above, the MVRV 365-d is still far from the historical bottom. According to analysts, the market will have to be patient before bitcoin recovers to previous levels.
At the time of this writing, the price of bitcoin in the BTC / USD pair is $ 47,292. The market capitalization of the cryptocurrency has decreased to $ 891.4 billion. About who, according to the ex-head of Binance.US, may be behind the bitcoin correction – read in the material of the BeInCrypto editorial staff …
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