The Bitcoin Whales Market Slashed Prices At A Record Rate In November of 2022
Bitcoin “whales,” or those with the most Bitcoin on the market, have sold the most BTC in the last 30 days in history.
According to Glassnode, a blockchain analytics firm, Bitcoin whales have sold a total of 280,000 BTC in the last month.
Whales presently control approximately 9 million BTC, representing a considerable part of the total Bitcoin supply of 21 million BTC units. The following numbers are specific:
- Whales with 1,000 to 10,000 bitcoins have 3.6 million bitcoins.
- Whales with 10,000 to 100,000 BTC control 1.9 million BTC.
- Whales with 100,000 BTC or more control 3.6 million BTC.
The massive selling pressure indicated above explains why the Bitcoin price has consistently struggled to rebound, even when the bad attitude around the FTX issue has subsided considerably.
Let’s look at the state of the industry over the last two years or so to get a better picture of why whales have chosen this time to disrupt the market. First, the robust bull cycle of 2020-2021 resulted in a blockchain total yearly realized return record.
Over $455 billion in annual gains have been transferred on-chain by Bitcoin investors, with the biggest amount occurring shortly after BTC’s all-time high of 69,000 in November 2021.
Since then, the market has rapidly descended into a bear market, resulting in almost $213 billion in actual losses. This is equivalent to 46.8% of the profit for the 2020-2021 bull market, which is around the same size as the 2018 bad market, which returned 47.9% of the loss.
Despite these enormous, rapidly shifting losses, the total supply of Bitcoin held by long-term investors (LTHs), often known as whales, continues to grow, demonstrating that they still exist. Have faith in BTC’s revival.
According to the chart below, it is extremely difficult for LTH’s BTC to leave their possession from May 2022 until the present, despite the market’s frequent changes such as the collapse of LUNA/UST, Celsius – 3AC’s liquidity crisis, and FTX’s massive disaster.
However, Bitcoin did not exhibit a remarkable bounce, particularly at the close of the year, remaining stuck in the 16,000 – 17,000 USD zone. In fact, at a time when traditional financial markets appear to be “taking a break,” investors require cash to fund their expenses as the new year approaches. As a result, it is reasonable that the LTH side’s loss of patience and practical need, which leads to BTC discharge, is also understandable.
On the other hand, November 2022 marked the largest difficulty correction since China banned Bitcoin mining in 2021. The record difficulty decline indicates that the majority of miners are working. was shut off as a result of the stress caused by Bitcoin mining earnings reaching a two-year low.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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