Bitcoin recently experienced a correction after surpassing the $62,000 mark on October 2nd. Despite this, there has been an interesting trend in the on-chain data analysis – whales, or large Bitcoin holders, have not participated in the recent selloff.
Between October 1st and 4th, Bitcoin was consolidating around the $60,000 zone amidst rising geopolitical tensions between Iran and Israel. However, following the U.S. jobs report, the flagship cryptocurrency saw a local high of $62,370 on October 5th, indicating bullish momentum in the broader crypto market.
As of October 6th, Bitcoin’s price has declined by 0.2% in the past 24 hours, currently trading at $61,950 with a daily trading volume of $12.2 billion, down by 53%. Despite the slight dip in price, data from IntoTheBlock shows that large Bitcoin holders saw a net inflow of 205 BTC on October 5th, with neutral outflows. This suggests that whales did not sell Bitcoin even as it crossed the $62,000 threshold.
Additionally, Bitcoin’s whale transaction volume decreased by 48% on October 5th, dropping from $48 billion to $25 billion in BTC. Lower transaction volumes often indicate price consolidations and reduced volatility in the market. Furthermore, data reveals that Bitcoin saw a net outflow of $153 million from centralized exchanges over the past week, signaling a potential accumulation phase as bullish sentiments for October grow.
While the on-chain data analysis provides insights into the behavior of whales and the overall market sentiment, it’s crucial to remember that external factors such as macroeconomic events and geopolitical tensions can swiftly impact financial markets, including the crypto space. As investors navigate through these uncertainties, staying informed and monitoring market trends will be key to making informed decisions in the volatile world of cryptocurrencies.