Bitcoin whale addresses drop on profit taking

Bitcoin’s “rich list” has shrunk over the last month amid the ongoing rally as more investors seek to take profits on their profits.

According to a report from CoinDesk, the number of Bitcoin wallets with at least 1,000 BTC has fallen by 8% since the beginning of February. The report cites data compiled by on-chain analytics firm Glassnode to show that retail investors and whales have been actively involved in profit-taking over the past few weeks.

Popular trader and market analyst Lark Davis tweeted a similar sentiment about the drop in “rich list” addresses, saying it did not show the bull run was coming to an end.

Whale addresses with 1,000 or more #bitcoin have been sold. This does not mean that the bull run is over, just that profit-taking is taking place.

– Lark Davis (@TheCryptoLark) March 15, 2021

The report also points to a general weakening in buying pressure from major investors, which points to the also declining phenomenon of the “Coinbase premium”.

According to the metric, the lower demand for BTC on Coinbase compared to Binance indicates a decline in interest from institutional investors as the latter prefer to use regulated exchanges.

The report reads:

The price since the beginning of January has been mostly retail price, a fact supported by the [five times] more registrations with Binance compared to Coinbase.

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The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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