New Bitcoin Whales Are Selling Off, But Seasoned Investors Remain Steadfast

Recent on-chain data reveals that inexperienced Bitcoin holders, referred to as "New Whales," have recently been selling off their assets, while experienced investors, or "Old Whales," are holding steady.

Key Takeaways

New Bitcoin whales are selling off their assets, realizing losses amid market volatility.
Experienced Bitcoin holders remain largely inactive during price declines.
Bitcoin's price has recently climbed back above important support levels following a market recovery.

In summary, the actions of New Whales signal a reactive approach to the market, while Old Whales maintain a steadier course, providing insight into investor behavior during fluctuating market conditions.

Bitcoin Whales

Newbie Bitcoin Whales Are Experiencing Losses

In a recent update on X, analyst Maartunn from CryptoQuant discussed the latest trends in profit and loss behaviors among Bitcoin whales. The term "whales" typically describes Bitcoin investors who hold at least 1,000 BTC.

At today's market price, this threshold equates to approximately $91.6 million, which highlights the substantial influence these investors can have on the market. Whales are categorized into two groups based on how long they've held their investments. Investors who bought in the last 155 days are labeled as short-term holders (STH) or New Whales. In contrast, those who have held their investments for a longer duration are known as long-term holders (LTH) or Old Whales.

The following chart shared by Maartunn illustrates the net profit or loss realized by these Bitcoin whale groups over recent months:

Bitcoin Whale Realized Profit

The chart indicates that both whale groups have recently faced negative metrics regarding their profit and loss. Notably, New Whales have exhibited spikes in loss realization, which coincides with declining cryptocurrency prices.

New Whales often represent less experienced investors who tend to react quickly and emotionally to market fluctuations, leading them to sell during downturns. This behavior has been evident during the recent price drop.

Conversely, Old Whales portray a more composed presence in the market. While some loss selling has also occurred among these seasoned investors, their selling activity is minor compared to that of New Whales. The lack of significant movement from Old Whales during recent market downturns, as well as the subsequent recovery, is a trend worth monitoring.

Speaking of recovery, Bitcoin has bounced back above a significant on-chain cost basis level. Analyst Ali Martinez noted on X that the Bitcoin UTXO Realized Price Distribution (URPD) indicates substantial buying last took place at $84,500.

Bitcoin URPD

In on-chain analysis, strong demand levels beneath the current price are viewed as potential support for Bitcoin, while levels above are generally regarded as resistance. For example, a notable resistance level is identified at $112,300.

Current Bitcoin Price

Bitcoin's price has seen further recovery over the past day, now reaching $92,300.

Bitcoin Price Chart