On-chain data shows whales are piling up as Bitcoin price falls below $ 30,000

Although Bitcoin fell below $ 30,000 for the first time in a month, on-chain metrics suggest that whales may steadily pile up BTC.

According to the message “The week on-chainOn July 19, Glassnode’s centralized exchanges’ BTC reserves continued to volatilize, despite the recent sustained downward momentum, with an average of 36,000 BTC (valued at around $ 1 billion) being withdrawn from the exchanges every month.

Glassnode believes that the shrinking Bitcoin reserves on the exchanges are showing that large investors are moving BTC to safe storage instead of leaving their coins for sale on the exchanges.

Change in Bitcoin Net Position on Exchanges | Source: Glassnode

Glassnode also notes a recent surge in the number of companies selling Bitcoin since May, from around 250,000 to nearly 300,000 today. Glassnode describes “an entity” as a single cluster of addresses linked in the chain.

The blockchain analyst found that the number of “sending entities” – the unique clusters of addresses involved in selling – has decreased by about a third, from 150,000 to 100,000, while “receiving entities” (receiving entities) – the allegedly piling up or withholding tax – increased by more than 20% from 190,000 to 250,000 over the same period.

Changes to entities | Source: Glassnode

While Glassnode emphasized signs of consolidation, it noted that the market sentiment was very divided and expected extreme volatility for the market:

“We have an extremely divided market and a market that is likely to increase volatility just around the corner.”

The analyst added that miners are now also in accumulation mode, despite the cost of mining in the massive exodus following China’s raid. The Miners Net Position Change Index shows that currently over 3,300 BTC is accumulating per month.

Tan

According to Cointelegraph

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