Popular on-chain analyst Willy Woo says the largest Bitcoin whales are disappearing as a massive distribution phase is underway.
In a new interview with crypto analyst Tone Vays, Woo says that humpback whales, or entities holding 10,000 Bitcoin or more, are facing extreme extinction as they have been distributing their large BTC troves since 2012.
[adinserter block="1"]“The mega-wealthy [are] disappearing from the Bitcoin blockchain. This is like a story of immense distribution of coins to even distribution which is exactly what you want in a monetary network. The guys in the middle are still in the middle. But there’s a general divestment since 2017 downwards which is very healthy. The little guys are coming up.”
Although the sustained selling of the mega-wealthy BTC holders could sound bearish to some, Woo explains why the distribution is actually good for the long-term health of BTC.
“Humpback whales exiting over time is not a good sign. It is hell yes a good sign… You want them to distribute for the sake of decentralization. When you look at up down, up down and locally, you may look at whales buying or selling. But if you’re interested in Bitcoin going from 763 micro pennies to $42,000 over 12 years, you’re interested in whales reducing their holdings and the masses holding it.
Don’t get locked into the short-term game. Look into the big picture of are your Bitcoins going to be worth $500,000, $1 million or $10 million in the next 10 years?”
Woo says there is one emerging breed of smaller Bitcoin whales upping their share of the market, which he says is playing a key role in the current boom cycle.
“The only difference that we’ve got right now is the rise of the dolphin sharks – over 100 Bitcoins. This is the rise of high-net-worth family offices and hedge funds. I would say hedge funds. The majority of those are held by many investors… We’ve got a lot of high-net-worth entities buying the dip, and they’re reflecting in the dolphin numbers.
Overall, we’re getting a very clear picture that the spread of wealth within this network is moving incredibly well towards an even distribution and a very decentralized ownership.”
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