Bitcoin’s Bull Run Fallout as Whales and Sharks Unleash Selling Spree: CryptoQuant

The bullish momentum that catalyzed Bitcoin’s rally above $49,000 this year seems to wane, with the leading crypto asset dropping by double digits over the past week or so.

Amidst the ongoing decline after the recent debut of spot Bitcoin ETFs in the US, large holders of BTC are now acquiring the crypto asset at lower prices.

Whales and Sharks Dump Bitcoin Holdings

According to the latest analysis by CryptoQuant, Bitcoin is currently facing a surge in selling activity initiated by both sharks and whales, prominent holders of the asset. These investors, who amassed substantial amounts of Bitcoin during the 2023 bullish period, are now seeking to capitalize on their profits by liquidating their assets in the trading markets.

As per CryptoQuant’s classification, sharks are those with Bitcoin holdings ranging from 100 to 1,000 BTC, while whales are with over 1,000 BTC. These entities are deemed influential in the market due to their capacity to maneuver significant volumes of Bitcoin within exchanges.

This contrasts with the previous trend, where the inflow was mostly driven by retail investors, or shrimps, who have less than 1 BTC in their wallets. Shrimps have been the main buyers of Bitcoin in the past year, as they have taken advantage of the low prices and the increasing adoption of the crypto.

“Temporal data indicates that these holders, with a higher ratio than short-term Bitcoin holders, have significantly filled their pockets with substantial amounts of Bitcoin during the upward trend in 2023.”

Signs of Revival?

Even as Bitcoin tanked below the psychological support level of $40,000 earlier this week and the selling pressure continued, experts remain confident about the asset’s long-term prospects.

Crypto Analyst Ali Martinez, for one, predicted that Bitcoin’s next market peak could transpire around October 2025.

Despite some significant Bitcoin entities divesting their holdings, other notable whales are actively accumulating assets despite the market’s volatility. In a contradictory analysis, Martinez revealed that 46 new entities have emerged, each now possessing 1,000 BTC or more. This marks a noteworthy 3% rise in the count of entities with substantial Bitcoin holdings within a mere two-week timeframe.