Blockchain data shows that major Bitcoin investors sold some of their holdings during this year’s price rally.
The number of unique addresses greater than 1,000 BTC, sometimes referred to as the “rich list” of Bitcoin, has shrunk by over 8% since Feb. 8, according to data provider Glassnode.
“Whale addresses have sold,” tweeted market analyst Lark Davis. “That doesn’t mean the bull run is over. It just means that there is profit-taking. “
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On Wednesday, 2,275 addresses held at least 1,000 bitcoins, more than 200 fewer than the February 8 record high of 2,488.
A single person or exchange can have multiple addresses, which raises some doubts about the numbers. It is possible that the increase or decrease in the number of addresses with at least 1,000 coins does not necessarily represent a corresponding inflow or outflow of large investors.
However, any easing in buying pressure from large investors would be in line with other current market indicators, including a decrease in what is known as the “coinbase premium”, which theoretically indicates a decline in institutional demand.
However, Bitcoin remained bid for the past 5.5 weeks, hitting new highs of over $ 60,000, possibly due to increased retail involvement.
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“Since the beginning of January, the price has been mostly in retail, which is due to the [five times] more registrations with Binance compared to Coinbase, ”said Glassnode’s Uncharted newsletter on February 27th. Coinbase’s Coinbase Pro unit is aimed at larger, more discerning traders such as institutions and wealthy individuals.
The list of the rich grew during the period from May 2020 to February 2021, when whales vigorously amassed the cryptocurrency.