Bitcoin Whales, Retail Investors Show Contrasting Behavior- Here’s Why
- The divergence between Bitcoin’s retail and whale behavior grew.
- Activity for the royal coin increased, and traders remained positive.
According to new data, the gap between Bitcoin whales and retail investors has grown exponentially. It is important to note that the difference in the behavior of these entities can affect vulnerable retail investors in the long run.
How much is 1,10,100 BTC worth today?
The divergence continues to grow between retail and whales at an exponential rate.
Retail now has just over 3M #Bitcoin while whales have breached below 9M #Bitcoin. pic.twitter.com/WH1e65P1qf
— James V. Straten (@jimmyvs24) 11 February 2023
Based on glassnode’s data, it was observed that whale addresses are continuously exiting their positions and selling BTC.
Conversely, retail investors continued to show interest in the royal coin. Number of addresses that have more than 0.1 and 0.01 BTC hit both all-time highs, at the time of writing.
The increase in retail interest can be considered a positive sign for BTC. However, if the decline in whale interest continues, it could have a negative impact on the overall price of the coin. This contrast in behavior can have negative connotations for small investors.
But at the time of writing, there wasn’t much selling pressure on Bitcoin. This was indicated by reading a decreasing MVRV ratio.
The negative MVRV ratio suggested that most addresses would not be able to make a profit if they decided to sell their holdings at the current price.
Source: Sentiment
Another positive factor for Bitcoin was its increasing activity. According to Santiment’s data, the speed of BTC has increased significantly in recent days.
Along with that, the total daily active addresses also went up. Interestingly, the average size of each BTC transaction during this period reached one Maximum 5 years of 1,054,778 BTC.
Read Bitcoin Price Prediction 2023-2024
Source: Sentiment
Not all good news
There were many positive developments in Bitcoin’s network, but a few areas raised some concerns. One of them was the growth of Bitcoin on foreign reserves.
The growth in foreign exchange reserves indicated that a possible increase in selling pressure can certainly be predicted and the possibility of high volatility cannot be ruled out either.
Source: Crypto Quant
Despite this, however, traders remained optimistic about the state of Bitcoin. According to coinglass, the total number of long positions exceeded the number of short positions on BTC.
At press time, 52.81% of all positions taken against Bitcoin were long.
Read Bitcoin Price Prediction 2023-2024
Source: coinglass
That said, however, it remains to be seen if the traders are right about the future of BTC.
