The largest Bitcoin holders, or “whales,” who have more than 10,000 BTC, have been actively collecting the digital currency in recent weeks, causing a wide divergence in the market.
In the meanwhile, smaller investors and Bitcoin holders have begun liquidating their holdings.
Crypto expert Hoss posted this observation on Twitter and emphasised the stark differences in investor behaviour, citing the blockchain analytics company Glassnode.
The accumulation patterns of whale accounts, which are identified by the quantity of Bitcoins they have, are determined by Glassnode. On-chain data, which documents transactions on the blockchain network, is analysed to achieve this. By identifying and monitoring the activities of these so-called whales, Glassnode is able to get important insights into their trading practises.
Hoss tweeted a graph with blue regions denoting stages of buildup by wealthy accounts owning more than 10,000 Bitcoins. Smaller holdings, such individual investors, have started abandoning ship at the same time.
This discrepancy shows that significant investors may have divergent opinions on the price performance of Bitcoin in the future, and it is unclear which perspective will prove to be accurate.
The biggest cryptocurrency continues to trade below $28,000.
