According to analyst Glassnode, giant whales appear to be pulling out their funds and dumping bitcoin on centralized exchanges as bitcoin slumps below the $34,000 mark, reversing all of its gains since January this year.
It is worth noting that this crash also caused the overall cryptocurrency market value to drop from $1.75 trillion to $1.62 trillion, and the cryptocurrency derivatives market experienced a surge of liquidation, with the liquidation scale in the past 24 hours exceeding $260 million.
Glassnode published several bearish data earlier today (9th), indicating that giant whales holding at least 1,000 bitcoins are exiting the market, and the number of giant whales is rapidly falling to the lowest level since the beginning of the year. Meanwhile, centralized exchanges saw inflows of more than 1,755 bitcoins in a single week, the highest since February this year. It also paints a bearish picture for the short-term outlook for bitcoin prices.
#Bitcoin $BTC Number of Whales just reached a 1-month low of 1,789
Previous 1-month low of 1,790 was observed on 06 May 2022
View metric: t.co/k1K8OJKRWt pic.twitter.com/tBKzoOARpt
— glassnode alerts (@glassnodealerts) May 9, 2022
Large inflows of Bitcoin from centralized exchanges mean that the big whales may be selling, which is generally seen as a strong bear market signal.
On-chain data analysis platform CryptoQuant recently pointed out that the recent sell-off may have been triggered by short-term holders, who started buying bitcoin in late January and early February this year, when the price of bitcoin was around $34,800.
Bitcoin was trading at $33,363 at press time, down 13.4 percent over the past seven days, according to CoinGecko. To put it more simply, that is, the price at which these holders bought bitcoin at that time was higher than the price at which they were sold now.
Affected by many uncertain factors, the “Crypto Fear & Greed Index” (Crypto Fear & Greed Index) is currently at 11 “extreme fear” position.
Bitcoin Fear and Greed Index is 11 — Extreme FearCurrent price: $34,041 pic.twitter.com/PQK3x6YMok
— Bitcoin Fear and Greed Index (@BitcoinFear) May 9, 2022
This article Bitcoin fell to January lows this year! Data: The urgent sell-off of “jumping boat” by giant whales first appeared in the block guest.