Bitcoin ($BTC) Whale Holdings falling for the last 11 months; 10 yr old coins moved!

Dedicated market watchers are signaling low confidence among BTC whales.
Whale holding lowest in 29 months.
Legacy coins moved recently.

According to market intelligence platform Santiment, Bitcoin whales are holding the lowest supply of the cryptocurrency in 29 months. ‘Bitcoin whales’ are those addresses that own 1000 or more Bitcoins.

Bitcoin prices are at record lows; it fell over 50% over the last 6 months. Its highest recorded price was approximately $69,000 last November. Since then, due to rising energy prices, market pressures and the Russian invasion of Ukraine, Bitcoin price has been at record lows. Presently, the price is hovering around the $19,000 mark.

Santiment tweeted on September 25th sharing a graph showing the holdings (total) history of Bitcoin whales for a period of 29 months. The holding touched the lowest point since April 4th, 2020 amid fears of inflation and recession. The tweet also mentioned that the amount held by whales had been falling for the last 11 months.

The Federal Reserve or Fed, which is the central bank of the US, is hiking interest rates aggressively and has vowed to continue similar hikes as long as inflation falls back within the target bracket. Central banks have been fighting persistent inflationary pressures with interest rate hikes.

Recently, the Bank of England and Bank of Japan raised interest rates. This came as a surprise, albeit not a large one, as these institutions are known for not changing rates frequently.

The Russian invasion of Ukraine may only get worse. Putin has mobilized reserve troops and threatened the use of nuclear weapons. The war led to an Oil crisis with Europe struggling to meet energy demand. After sanctions were imposed on Russia by European countries and the US, it partially cut off oil supply to European countries.

Glassnode alerts tweeted on September 1st: ‘Long-Term Holder profitability has declined to levels last seen during the depths of the Dec 2018 bear market.

Long-term Holders are selling $BTC at an avg loss of 42%, indicating LTH spent coins have a cost basis around $32k.’

Another twitter update by Glassnode showed that 19 million addresses on the Bitcoin network were at losses – this is an all time high. The last all time high was reported as recently as this July.

According to Looking into Bitcoin, a website that tracks Bitcoin data, multiple ‘dormant coins’ or coins that have not been moved in a long time – some older than 10 years – were moved recently.

While markets are bearish and even legacy investors are indicating low confidence in crypto, market analysts are not as pessimistic, as far as crypto is concerned. Bloomberg’s commodity strategist Mike McGlone is all praise for Blockchain and is bullish on crypto in the long run. In an interview with Kitco news, he claimed it is a matter of time before Bitcoin touches the $100,000 mark.

Another notable development tweeted by glassnode alerts: the number of addresses with small holdings (Addresses Holding 0.01+ Coins) on the Bitcoin blockchain has reached an all time high of 10,702,698 as of September 16th.