Bitcoin: Whales continue to dump their BTC on crypto exchanges

The number of Bitcoin whales has fallen to levels not seen in 2022, and the volume of transfers to crypto exchanges has also peaked since the start of the year, showing the whales’ urge to liquidate their BTC.

The number of Bitcoin (BTC) whales has seen a steady decline and is back to levels seen earlier in 2022, according to blockchain intelligence firm Glassnode.

Glassnode has also seen that the volume of entries on crypto exchanges has increased sharply. Specifically, BTC addresses traded over 1,700 coins — the highest level of inflow since February.

High inflow volumes on crypto exchanges suggest whales are selling their holdings as they prepare for a long-term bear market. Bitcoin’s fear and greed index currently sits at 11, a region of extreme fear.

BTC continues to plunge, but daily transactions remain above 200K

Following the bullish performance of 2021, many analysts and organizations have predicted that BTC will continue to trend higher in 2022. An example is the US multinational investment bank Goldman Sachs, which has stated that the flagship cryptocurrency could trade above $100,000. The bank said BTC could take this step if investors view it as a store of value.

However, a series of events, including the COVID Omicron variant and fears of rising interest rates, caused BTC to fall from its all-time high of $68,692.14 reached on November 10. BTC changes hands at $33,503.12 after losing 3.17% on the day. This price represents a drop of 14.06% in the last seven days.

As BTC continues to underperform, Checkmate, Glassnode’s lead on-chain analyst, said:

Many of you are waiting for the #Bitcoin “surrender wick”. If this happens, and it really is THE wick of surrender, the majority of people won’t buy into it because the fear will be too great. It is always so, and it always will be so. Tip: Have a plan, stick to that plan.

Although BTC is collapsing, the number of daily transactions is not affected.

Data from YCharts indicates that BTC recorded 233,892 transactions worth approximately $30 billion on May 8. This volume has been within the range of the daily average since January.

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