In a surprising turn of events, large Bitcoin whales, have been offloading their holdings. Over the past week, approximately 50,000 BTC, equivalent to about $2.20 billion, have been sold, according to a post by crypto analyst Ali Martinez on December 22.
#Bitcoin whales have sold around 50,000 $BTC over the past week, worth roughly $2.20 billion! pic.twitter.com/rBK8DGmg8B
— Ali (@ali_charts) December 22, 2023
This move might raise eyebrows among investors, leading some to speculate that the Bitcoin rally could be nearing its end. However, the reasons behind this sell-off are unlikely to be bearish. The surge in the cryptocurrency’s price has attracted both institutional and retail investors, prompting some long-term holders to seize the opportunity to secure substantial profits. The exact motivations behind these whale transactions, however, remain speculative.
Backing up this assertion is the fact that 89% of Bitcoin’s supply is currently profitable. As we near the year’s end, this serves as a potent indicator. Historically, the likelihood of additional growth is noted when this measure lies between 40% and 70%, according to a December 21 post by Santiment.
Bitcoin’s Performance Analysis: Beyond the Whales
Bitcoin is valued at $43,517, indicating a 0.62% decrease in the last 24 hours. This is in contrast to the positive returns of 3.07% over the past week and 18.79% over the past month. The price of this asset has shown substantial growth over the past year, with an impressive rise of 159%. Importantly, it has surpassed 72% of the top 100 cryptocurrencies in terms of performance over the past year.
Moreover, the cryptocurrency is currently being traded above its 200-day simple moving average, which is a favorable sign in technical analysis. Over the past 30 days, the investment has seen positive price changes on 18 days, accounting for 60% of the period under observation.
Despite the recent sell-off by whales, the overall outlook for Bitcoin remains positive as we head into the new year. In addition to the increase in active on-chain addresses, the current sentiment surrounding the spot Bitcoin ETF is also contributing to the robustness of the leading cryptocurrency.
