Bitcoin Whales Secure Extra BTC as Exchange Balances Decline — Don't Panic sell

While some investors panicked and sold off Bitcoin, the bulls are now aggressively buying the digital coin at a near price of  $31,000. As a result, liquidity is being soaked up from weak hands by crypto-revolution.app. And while the report indicates that whales may have unloaded last year, demand for BTC still shows no sign of halting.

According to reports from CryptoQuant, an on-chain monitoring resource, Bitcoin Whales have started shedding their BTC stocks once again since December 2021. 

By crypto standards, bitcoin whales are individuals or groups that store large amounts of bitcoin in their wallets. They mostly hold sufficient cryptocurrency that has the potential to alter the direction of the market and valuation of any currency. Hence, great bitcoin holders are known as whales because their actions disturb the waters that other fish swim in.

BTC is noticeably impressive at the existing levels

According to the data available, there has been an increase in the overall outflows than inflows of BTC traded by investors. The most logical interpretation of the data is that most investors now prefer to sell or run away from losses.

Between the 7th and 28th of December, CyptoQuant monitored the BTC reserves of twenty-one major platforms. Data showed that there was a surge in BTC reverse as it surged from about 2.3 million BTC to 2.4 million BTC in a matter of days.

Ki-Young Ju the CEO of CryptoQuant speculates that $BTC has been sold to new buyers and most likely institutional investors. Presently, the trade's record is standing at around 2.3 million BTC even though the spot price is still ranging at six-month lows.

The industry traded balance movement now occurs simultaneously with appreciable on-chain needs from potential investors. Ki-Young also believes that while older whales have shown some impatience in past years, they are still able to promote trend reversals. 

Whales might reach for another dip

 Even though it's general knowledge, the exchange balance trend now overlaps with observable demand from primary investors. 

As indicated by the "CC15Capital" Twitter account, the dash to around $32,500 price range was completed by a BTC buy-in worth millions of dollars from a specific wallet. Before August, the wallet had accumulated more than $1 billion value of BTC which has an initial zero balance.

 This current event is happening at a time when long-term investors now have strict determination to further hold their crypto assets. According to reports from Cointelegraph, accumulated BTC in various crypto wallets that have not moved in more than a year now represent 60% of the total BTC in circulation.  

Bitcoin Whales can influence a crisis because of the accumulation of wealth. This is especially true if it is stationed in an account, such that it brings down liquidity, which increases price volatility.  

Furthermore, volatility is also increased if the whale moves a huge amount of bitcoin at once. Hence, if large holders attempt to sell their assets in small amounts over a long time, it brings the spotlight to themselves. They will also produce market contortion, sending the price up or down suddenly.

Whale expansion, in the meantime, has been conspicuous elsewhere in the time following the decline from the all-time high price of $69,000. 

Similarly, in commonplace wisdom, the trade strength development now concurs with a tangible on-chain call for from major traders

Buying Bitcoin 

 Similar to a brokerage, cash can be deposited through bank transfer and any other means to buy bitcoin. However, one will have to pay for this service.

If any trader wants to purchase cryptocurrencies, a conversion fee just like bank charges will be paid.

Investments and sales are also founded on the same existing brokerages ordering system. Hence, buyers can place a maximum order which is then traded when a complementary cryptocurrency is on the ground.

To perform a bitcoin transaction on any exchange, a user has to be registered with the exchange system. After that, the trader must pass through a progression of verification processes to validate their identity. 

Immediately, the authentication is done and the account is opened, users must deposit some funds into their account. The fund can then be used to buy the desired quantity of BTC.