In the last week, 5% of the total Bitcoin (BTC) supply has been transferred to cryptocurrency exchanges. While five-thousandths of the total BTC supply flowed to crypto exchanges, the rapid decline of Bitcoin wallets in profit brought with it the concerns of draining the portfolios of long-term investors.
Data from blockchain monitoring platforms Glassnode and Santiment continues to reveal the effects of the decline in the cryptocurrency markets. While the data shows that a significant amount of Bitcoin has been transferred from large cryptocurrency wallets to exchanges, this continues to negatively affect the Bitcoin price. Because in the last week, the BTC price has fallen by more than 20 percent. In Santiment data, stock market entries were seen as the fastest entries in the last 16 months.
Glassnode, on the other hand, draws attention to the decrease in the number of wallets holding large amounts of Bitcoin. While the number of Bitcoin whales with assets over 100 BTC was 1,781 in the first month of the year, the number has dropped to 1,776, the lowest of the last 1.5 years. The decrease is attributed to the amount of Bitcoin transferred to exchanges. Because while the entries to the stock market continue, the data showed that 28,000 BTC have been sent to the stock markets in the last 24 hours.
With the recent decline, the decrease of Bitcoin wallets in profit by about 10 percent is another worrying issue. The decline in profitable accounts was recorded as one of the sharpest drops in Bitcoin history. Commenting on the data, Glassnode analysts pointed out that these figures reached the same level as profitability rates in bear markets seen before.
While large investors' transfer of their assets to the stock markets is followed as an alarming development, it is seen that small investors also contributed to the price decrease in the panic atmosphere. Decreasing their sales and even repurchasing whales will play an important role in stabilizing the market again.