BTC Addresses Holding More Than 1k BTC Sell Part of Their Funds

· in Breaking, Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.
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In recent weeks, Bitcoin (BTC) addresses that hold more than 1,000 BTC have been selling part of their coins. Although this could be a cyclical pattern, it is worth taking into consideration that there might be some profit-taking at these price levels. 

Bitcoin Whales Sell Their Funds

Bitcoin whales are selling their BTC as the price of Bitcoin remains close to its all-time high. The virtual currency has been traded between $55,000 and $60,000 in recent weeks and this trend could continue in the future. 

When the price moves higher, it is common to see large players selling part of their coins to take some profits. Nevertheless, when the price moves downwards or drops, they usually increase their positions to get more exposure to the market. 

In a recent tweet, investor Lark Davis stated:

“Whale addresses holding 1,000 or more #bitcoin have been selling, this does not mean the bull run is over, it just means  that profit taking is happening.”

In addition to it, there has been a strong trend since March 2020 where we see that investors are withdrawing their BTC from exchanges. This is something that happened during the recent bull run. The price of Bitcoin moved higher and the BTC from exchanges constantly fell. 

Bitcoin (BTC) moved from $3,800 to over $61,000 with a constant withdrawal of funds from exchanges. The Bitcoin¡s available on these platforms fell from 3 million BTC to below 2.5 million. This is the lowest level since mid-2018. 

This shows that there are several buyers that want to store their funds in cold-storage wallets. These investors are waiting for the price of the virtual currency to move even higher in the coming months and years. 

Many analysts such as PlanB that follow the stock-to-flow model (S2F) consider that Bitcoin could eventually surpass $100,000 and hit $288,000 in the future. This is something that could take place in the coming months if the trend continues. 

Additionally, there are several firms that are allowing their clients to buy and sell Bitcoin. These companies include PayPal and Robinhood, among others. What we see is that demand for BTC continues growing from retail investors but also from institutions. 

In recent months, we have seen how firms such as MassMutual, Square or even Tesla have purchased large amounts of Bitcoin. Perhaps, MicroStrategy has been the firm with the most aggressive position towards BTC and the cryptocurrency market in terms of purchases after acquiring several millions of dollars in Bitcoin.