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Bitcoin Whales Playing It Safe? Addresses Holding 1,000+ BTC Decline Ahead Of US Elections

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This article is also available in Spanish.

Bitcoin (BTC) whales appear to be unloading some of their holdings ahead of the hotly contested US presidential election in 2024.

2% decrease in Bitcoin held by whale addresses

In a mail On

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According to the analyst, there was a 2% decrease in the number of wallet addresses holding 1,000 BTC or more.

source: ali_charts on X

Notably, since May, the number of Bitcoin whales reached its highest levels during mid-October when Republican presidential candidate Donald Trump was the favorite to emerge victorious.

At the time of writing, the decentralized prediction markets platform is Polymarket Gives Trump has a 62.7% chance of winning, while Democratic candidate Kamala Harris has a 37.4% chance of becoming the next president of the United States.

Bitcoin whales selling some of their Bitcoin holdings as Americans prepare to vote may indicate a cautious approach, perhaps to mitigate potential price volatility associated with the election.

Do Bitcoin whales anticipate price fluctuations?

The sell-off may indicate that Bitcoin whales are anticipating a tougher regulatory environment for digital assets after the election. This concern may not be unfounded, as the Biden administration has faced accusations of adopting a hostile stance towards the digital assets industry.

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On the contrary, Trump repeatedly promised to make the United States “the cryptocurrency capital of the world” during his election campaign.

In addition to the whale sell-off, long-term Bitcoin holders appear to be unloading their holdings. According to another analysisMore than 177,000 Bitcoins have been sold by long-term holders in the past seven days.

Another scenario worth considering is that any further decline in whale addresses’ Bitcoin holdings without a corresponding decline in price could signal that retail investors are ramping up purchases of the digital asset.

Notably, demand for Bitcoin among retail investors has been on a steady upward trend since September 2024. According to a recent study a reportRetail demand for Bitcoin rose 13% in the past month, reflecting a shift in risk appetite in the market from risk aversion to risk appetite.

Martinez also drew attention to Bitcoin Sequential TD On the 12-hour chart and how a buy signal flashed.

For the uninitiated, the TD Sequential Indicator is a technical analysis indicator used to identify potential price exhaustion points and trend reversals in the financial markets.

However, a Trump victory may not be the silver bullet for a decline in the price of Bitcoin, as it is now Very important For the top digital assets to maintain the support level of $68,000 to avoid a slide to $63,000. At press time, Bitcoin is trading at $69,595, up 1.3% over the past 24 hours.

Bitcoin
BTC is trading at $69,595 on the weekly chart | source: BTCUSDT on TradingView.com

Featured image from Unsplash, charts from X and Tradingview.com

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