Long-term whales that have been holding onto their Bitcoins (BTC) for more than seven to ten years are selling them back for the first time since the collapse of Terra (LUNA) in May, as indicated by the Volume Spent Age Bands ( SVAB).

Spent Volume Age Banding (SVAB) is a separation of on-chain transfer volume based on the age of the coins. Each band represents the percentage of the volume spent that was previously moved within the time period indicated in the legend.

The graph above shows the total transfer volume of coins that were last active between seven and ten years. The chart below, on the other hand, shows the same data for coins that have been stagnant for more than ten years.

Both charts start in October 2020 and show monthly settlements. The effects of the Terra crisis can be seen in both graphs, with an increase in volumes spent during May. The same peak can also be seen in September 2022, especially for Bitcoin, which last moved between seven and ten years ago.

Are whales quitting smoking?

Whales are considered smart money within the Bitcoin ecosystem as they have managed to withstand almost all bear market cycles. Furthermore, these incumbents have survived countless block wars and FUD attacks.

7-10 year old whales recorded their fifth and sixth highest transactions of the year during September.

Although whales over ten years old did not record yearly highs, the chart shows a notable increase in sell-offs. Since whales older than a decade can understand market cycles better than any cohort, their sell-offs indicate bearish sentiment.

whale decline

In addition to the massive sales, the numbers also show a decrease in the number of whales.

People holding at least 1,000 Bitcoins are known as whales, and their numbers have dwindled since the peak of the 2021 bull cycle, which took place in January 2021. Although it was the peak, January was only the beginning of the bull run. . However, most of the whales cashed in during January.

The recorded decrease in the number of whales from January 2021 to July 2021 is understandable due to the bull run of 2021. Between July 2021 and April 2022, the number of whales increased as the price of Bitcoin also increased. stabilized between $60,000 and $40,000.

However, Bitcoin continued to fall after April 2022. Even with the price decline, the number of whales dropped from 2,150 to 1,695. The last part is particularly interesting as whales tend to wait for prices to pass. winter.

on the bright side

The decrease in whales and the large number of liquidations, despite the low prices, indicate a bearish sentiment, but there is a positive side. Liquidations and whale disappearances mean that your Bitcoin is distributed to more than one person.

This means that Bitcoin is concentrated among fewer and fewer people. In the long run, having more distributed Bitcoin benefits the retailer and increases the security of the network.

Posted in: Bitcoin, Research

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This post Decade-old whales selling bitcoin again; the last time was during the collapse of LUNA

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