A recent trend has emerged among early Bitcoin holders, raising eyebrows across the cryptocurrency community and potentially explaining the protracted slump in Bitcoin prices. On-chain data analytics reveal a notable selling spree by significant investors, known as Bitcoin whales, who are offloading massive quantities of their BTC holdings amid ongoing market turbulence.
According to the data, two prominent Bitcoin whales began transferring substantial portions of their holdings into centralized exchanges in October. By the beginning of November, these whales had collectively dumped more than 16,000 BTC into the market, valued at a staggering $1.7 billion. This influx of Bitcoin onto exchanges indicated considerable sell pressure, contributing further to the observed price decline.
Whale Activity Intensifies
Although the initial phase of selling appeared to taper off soon after, the reprieve was short-lived. On-chain analytics platform Lookonchain reported that whale activity has once again surged, with one key whale re-emerging to offload the remainder of their Bitcoin holdings. Owen Gunden, a recognized Bitcoin OG, has been at the forefront of this trend, recently transferring 3,549 BTC—worth approximately $362.84 million at the time—to Kraken after previously moving another 600 BTC valued at $61.17 million.
All told, Gunden has now sent a total of 11,000 BTC, equating to about $1.12 billion, to various exchanges, presumably to liquidate these assets.
The Rationale Behind the Sell-Offs
The increasing activity among these early Bitcoin investors has prompted questions regarding their motivations for selling at this juncture. With Bitcoin’s price facing a critical resistance around the $100,000 mark, some analysts warn that these billion-dollar sell-offs could precipitate a bear market.
Crypto influencer Udi Wertheimer offers a straightforward explanation for the surge in selling: these Bitcoin OGs are merely cashing in on their profits. Many of these investors accumulated Bitcoin at relatively low prices approximately 15 years ago. Now, having watched their investments swell into multi-billion dollar fortunes, it seems natural for them to realize their gains.
Instead of delving too deeply into the implications of the whales’ selling strategies, Wertheimer suggests that market participants should consider a more pressing question: why has Bitcoin not plummeted by 70% amidst such significant sell-offs? The strength Bitcoin has displayed—remaining resilient despite considerable selling pressure—should potentially give bears pause for thought and demand further analysis.
