 ▲ Bitcoin whale ©CoinReaders |
Bitcoin (BTC), the market bellwether that drew cheers after surpassing $74,000, has tumbled after being hit by massive profit-taking from whales, raising fears of further declines as retail traders are left holding the supply.
According to crypto media outlet Bitcoinist on March 8 (local time), blockchain analytics platform Santiment warned that whale wallets holding between 10 and 10,000 BTC sold 66% of their recently accumulated holdings near the $74,000 peak, suggesting that Bitcoin’s price correction could continue for the time being.
Santiment’s analysis showed that these large whales accumulated substantial amounts between February 23 and March 3, when Bitcoin was trading sideways between $62,900 and $69,600. However, once the price surged past $70,000 toward $74,000, they abruptly shifted to profit-taking. In contrast, retail investors holding less than 0.01 BTC increased their buying as the price fell below $70,000, effectively absorbing the supply offloaded by whales.
Santiment explained that the pattern of retail investors buying while whales sell is typically a signal that a downward correction is not yet over. The correlation between whale activity and Bitcoin’s price action is currently extremely high, making their behavior one of the most reliable indicators for predicting short-term direction.
Geopolitical tensions are also amplifying market anxiety. Santiment noted that conflicts involving the United States, Israel, and Iran are triggering fear and extreme volatility across financial markets, similar to the early stages of the Russia-Ukraine war. As the crypto market tends to move more on the conviction of major capital holders than on retail panic selling, the duration and potential resolution of the conflict are expected to be key variables in the coming weeks.
Amid overlapping macroeconomic uncertainty and sustained whale selling pressure, it is difficult to be optimistic about a short-term rebound. According to CoinMarketCap data, Bitcoin has declined 0.62% over the past 24 hours, hovering precariously around $67,307.
Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.