Earlier last month, Bitcoin experienced a wild run before it was sent toppling from its ATH. However, it appears that the bull market is starting to slow down according to Glassnode. The analytics firm reported that the bull season may be approaching its end as whales’ accumulation drops.
Based on the Glassnode report, there is a drop in the number of BTC whales while the number of small holders accumulating Bitcoin has spiked. Addresses with 1BTC and less are the ones on the buying spree as they reveal their readiness to HODL even through volatile periods.
In contrast, the number of whales holding more than 100BTC has dropped amid profit-taking. While this is not always associated with the bear market, it has however slowed down Bitcoin rally. According to another report, Bitcoin addresses holding at least 1000 BTC have experienced an 8% decline since February.
Bitcoin Whales Drop Indicates a Likely Reversal
The report also highlighted the general weakening of buying pressure from large investors. There is likely going to be a declining interest in crypto assets by large institutions with the ongoing COVID-19 vaccines administration says Jiang Zhuoer, BTC.TOP CEO. He added that the declining interest could trigger a bearish reversal.
Glassnode reported that there is currently a distribution of wealth from Bitcoin whales to retail buyers. The report said that “wealth-transfer” in a bull market is always in three different stages. According to the firm, the Bitcoin bull market is in the second or later phases.
However, long-term holders still own a larger proportion of supply, with about 62.6% in their control. Timothy Peterson, an investment manager, commented on the current drop in the number of Bitcoin whales. He stated that even though it does not always indicate a bearish market, the price of Bitcoin could fall to about $25,000.