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