Crypto News

Bitcoin Whales Move Strategically As Long-Term Holders Trim Balances

Since the November 5 elections, Bitcoin whales have been actively transferring funds to exchanges, yet refraining from immediate sell-offs.

This cautious “wait-and-see” approach suggests strategies like hedging or over-the-counter (OTC) trading rather than liquidation. However, the uptick in exchange inflows raises concerns about potential sell-offs in the near future.

Bitcoin’s long-term holders (LTHs) are also reducing their balances, now down to 12.45 million BTC—the lowest level since July 2022.

While this trend mirrors earlier cycles, the current 9.8% decline is relatively moderate compared to the 15% reduction in 2021 and the 26% drop in 2017.

Since September, long-term holders have distributed 507,000 BTC—a notable outflow, though significantly less than the 934,000 BTC sold during Bitcoin’s March 2024 all-time high. This tempered selling activity underscores LTHs’ optimism about Bitcoin’s long-term potential.

Adding to market movements, the U.S. government transferred 19,800 BTC (valued at $1.92 billion) just nine hours ago. Of this amount, 10,000 BTC (worth $962.9 million) were sent to Coinbase. These transfers, however, appear to be custody-related rather than outright sales. Year-to-date, the government has shifted a total of 25,999 BTC ($2.49 billion) to Coinbase but still retains 183,850 BTC ($17.57 billion) across various known addresses.

Meanwhile, Bitcoin spot ETFs continue to attract significant investor interest. On December 2, they recorded a net inflow of $354 million, with BlackRock’s IBIT ETF alone bringing in $338 million. The combined net asset value of Bitcoin spot ETFs now stands at $103.909 billion, signaling robust institutional demand.

These developments highlight a market navigating cautious optimism, strategic positioning, and sustained confidence in Bitcoin’s future.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.

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Image Source: Traxer on Unsplash  // Image Effects by Colorcinch

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