Since December 2024, a significant shift in the behavior of large bitcoin holders, known as whales, has been observed. More than 70 have reduced their holdings, potentially affecting price stabilization.
Trends in Whale Activity
According to Glassnode data, around 70 large groups holding over 1,000 BTC have exited the network or redistributed their holdings. This raises questions about the motivations behind these moves and their potential impact on Bitcoin's price trajectory. The chart shows a decline from 1.716 million large holders in December to 1.644 million by late January 2025.
Interplay of Price and Activity
The spike in whale activity is correlated with Bitcoin's price oscillation, which remained under $80,000 despite some upward momentum. Between October and December 2024, whale activity increased, but a sharp drop followed, possibly due to market factors such as regulatory uncertainties.
Future of Bitcoin
Ali's analysis highlights shifts in strategy among large holders. Short-term volatility is expected, but long-term prospects for wider decentralization could strengthen the ecosystem.
The ongoing changes in bitcoin whale behavior could drive greater decentralization and distribution among smaller investors, although short-term volatility is anticipated in the market.
