A recent report from highlighted a disturbing trend among early Bitcoin investors that could explain why the price of the cryptocurrency continues to decline. Early Bitcoin whales holding thousands of BTC have started selling significant amounts of their stash, according to data from an on-chain data analytics platform. But after a month of continued dumping, it appears these large investors are not done yet and more pain could be to come.
Bitcoin whales put billions of dollars on the market.
As reports, two early Bitcoin whales began moving their holdings to centralized exchanges last October. This selling continued into the new month, and by the first week of November, these two whales had sent over 16,000 BTC to exchanges. In total, the value of BTC exceeded $1.7 billion, showing the significant selling pressure that Bitcoin was facing at the time.
Following this initial sell-off in early November, the selling seemed to slow down, but this did not last long. Lookonchain, an on-chain data platform, reports that the whales are back once again, and this time, it looks like one of them will return and sell off the rest of its holdings.
Bitcoin OG Owen Gunden is at the center of all this selling, having recently moved the last of his significant Bitcoin holdings to a centralized exchange. Gunden sent a total of 35.49 BTC (equivalent to $362.84 million) to the Kraken exchange at the time of the transaction, following his previous sending of 600 BTC worth $61.17 million. In total, Gunden sent 11,000 BTC (worth $1.12 billion) to the exchange for sale.
Why sales are increasing
With these early Bitcoin whales on the move and sparking significant selling pressure in the market, the question arises as to why these investors are choosing to sell now after waiting all this time. This happens because the $100,000 level is still under threat and this multi-billion dollar selling could trigger a bear market.
While members of the cryptocurrency community search for deeper meaning in the sell-off, cryptocurrency influencer Udi Wertheimer provided a short and precise answer. OG is simply profiting. These whales were purchased when BTC was very cheap and kept for about 15 years. It has grown significantly since then, with most of them becoming billionaires, and it is only natural for these whales to sell and cash in on their profits.
Wertheimer explains that instead of asking why whales are selling, what investors should really be asking is, “With so many OGs being sold, why isn’t the BTC price falling -70%?” Considering the strength Bitcoin is showing during the sell-off, the cryptocurrency influencer believes “this is what is keeping bears awake at night.”
Featured image created with Dall.E, chart from Tradingview.com
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