As May progresses, Bitcoin whales made movements for approximately 251,604 BTC through 162 trades. All this according to the Whale Alert reports that we are used to monitoring and using. Bitcoin’s performance has been bearish throughout the week, but… Is there any mutual influence?
Before continuing, we reiterate that this summary is for informational purposes only, and that there are other factors that also influence the Bitcoin market. Thanks to this we analyze the activity of Bitcoin whales in a broader context.
What have been the notable movements of the Bitcoin whales this week?
First of all, the fact that more than 250K BTC has been mobilized in one week is impressive. However, the most marked trend of all was again the transfer between unknown wallets with a total of 135,191 BTC. This is equal to 53.73% of the weekly activity, at least in terms of the amount of BTC mobilized.
Summary chart of the activity and outstanding movements of the Bitcoin whales during the week. Source: Whale Alert
Next, the most prominent trend or movement during this week was the introduction of liquidity to the market. What happened is that the Bitcoin whales carried 48,244 BTC from unknown wallets to exchanges (19.18% of the weekly total). Although the possibility of it being for sale is high, it was not necessarily the case.
What is undeniable is that while Bitcoin was facing a clear downtrend, other altcoins may have been more attractive to some whales. Especially those that perhaps seek to generate profits immediately, or in the short term. It also usually happens that they sell because they expect a longer fall in the future, and with what they sell at a current price they can buy back those BTC in the future at a lower cost.
Whatever the case, the truth is that the accumulation was quite behind this week. In that sense, we can mention that 14.64% of the BTC mobilized this week went from exchanges to unknown wallets.
Finally, we registered 31,319 BTC mobilized between exchanges, which is equal to 12.45% of the weekly total. This makes it the weakest trend. However, May 14 was the strongest trend, as shown in the summary table.
Understanding Bitcoin activity
This week was “bloody” for BTC. What happened is that Bitcoin fell after Elon Musk announced on May 12 that Tesla is discontinuing payments in BTC due to concerns about its environmental impact. Additionally, the company did not deny that it had sold or could sell all of its BTC holdings in the near future. With all this, the outlook looks bleak. Proof of this could also be seen in the activity of the Bitcoin whales, which decreased their accumulation considerably.
Weekly chart of the price of Bitcoin (BTC). Source: CoinDesk
But you have to see the real impact of this with a magnifying glass, at least in the long term. Since Tesla announced that it would accept payments with BTC, there was a stir, but the number of Tesla customers excited to pay with Bitcoin was always going to be small or nonexistent. Eliminating that option feels like another PR stunt, and a clunky one too. The economic impact of eliminating something that hardly anyone would want anyway is negligible, both for Tesla and for the demand for Bitcoin.
However, it is undeniable that there is an effect on the nerves of those who trade in the market. However, once the debate on Bitcoin’s environmental footprint continues and alternatives are found, these Tesla justifications may lose power. But for now, BTC may not rally right away. At the close of this publication, BTC has a value of US $ 45,339, after having fallen by 5.18% in the last hours, according to CoinDesk.