Bitcoin Whale Activity Rises Despite Market Downturn

By: Eva Baxter

Quick Take

Even amidst a significant downturn in the cryptocurrency market, Bitcoin 'whale' transactions, those held by entities with 1000 BTC or more, are witnessing a noticeable surge. During a 20% pullback from Bitcoin's highs, these entities seem to perceive this as a chance to accumulate more, shown by a significant rise in activity that includes a withdrawal of approximately 38k Bitcoin from exchanges, a figure that notably surpasses the 24k BTC deposited on January 22. This indicates a preference for buying as the price dips under $40,000.

It has been observed that withdrawals have been exceeding deposits for six consecutive days. This peaked on January 17 with a remarkable 22k Bitcoin difference, followed by January 22 which saw a similar trend albeit on a slightly lesser scale, with a 13k Bitcoin difference. Such a trend of higher withdrawals than deposits indicates that these 'whales' are more inclined to transfer their Bitcoin holdings out of exchanges at the current time.

Simultaneously, there has been an increase in the total number of Bitcoin whales. The count has grown from 1,480 to 1,513 BTC, a figure that hasn't been seen since July 2022. The increased activity by whales, even during price slides, highlights the faith these entities have in Bitcoin.