Bitcoin (BTC) is still seeing supply reduction despite a significant spike in sales by whales on exchanges this week.
As confirmed by on-chain monitoring resource CryptoQuant on November 5, whales have accounted for the vast majority of the selling pressure in recent days.
Whale coins find a new home
A familiar event but with a curious moment: holders of large volumes are “dumping” BTC in the market, but at or near the all-time highs of April.
Despite the seemingly unanimous consensus among traders and analysts that the bullish trend is far from over, the whales appear eager to part with their holdings.
“Most of the BTC exchange deposits come from whales”, said Ki Young Ju, CEO of CryptoQuant, as part of the Nov.5 comments.
“Top 10 TXs take almost 90% of total volume in one hour.”
An accompanying chart of the exchange whale fee (the top ten exchange entries relative to overall entries) showed a clear increase from mid-October onwards.
Binance reverses the declining trend of exchange balances
However, there is a dichotomy: Whales may be selling, but overall, the BTC balance on exchanges continues to decline.
The appetite among buyers is increasing to satisfy the seller’s supply, and this explains the relative stability in BTC’s price action during the week, Ki argues.
“Bitcoin Maintains Support Above $ 60,000 Despite Whale Dumping … Exchanges reserve is shrinking, leading to lower supply on exchanges, “he added.
Other data from the firm Coinglass shows that Binance is an exception to the trend of November 5, its reserves rose 2,141 BTC in the 24 hours, until press time. However, this, in and of itself, is not unusual, as Cointelegraph reported last month.
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