A leading crypto analytics firm is issuing an alert to Bitcoin (BTC) holders that the large whale transactions over the past month could be a cause for concern for investors of the king crypto.
Santiment says that the five biggest Bitcoin transactions so far this year all occurred in March, with the largest BTC transfer worth about $564 million.
According to Santiment’s marketing director Brian Quinlivan in a new blog post, the size of the BTC transactions along with the decrease in Bitcoin’s whale and shark population could suggest that large entities are locking in gains.
“Based on the very large transactions going on in March, as well as the 10 – 10,000 BTC address tier continuing to slide down (by percentage) and taper off (by total addresses), it does look like there are some legitimate caution flags to be wary of if you’re hoping to see Bitcoin surge to $35,000 and beyond…
The five largest transactions of 2023 thus far have all happened in March, and this seems to be a result of profit taking and fears of a top after the ~+70% rebound for BTC.”
Quinlivan also shares a chart showing the fall in the ratio of the Bitcoin supply held by sharks and whales, or entities holding 10 to 10,000 BTC.
“The percentage held by this same shark/whale yellow line looks a lot more concerning, though, when taking a look at the percentage of Bitcoin supply held. After a nice accumulation pattern up until late January, the profit taking has gradually taken effect.”
At time of writing, Bitcoin is trading for $28,647, down over 1% in the last 24 hours.
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