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Bitcoin Supply Falls Short On Exchanges As Whale Manipulation Spikes

12 Oct, 20223 min readBitcoin
Bitcoin Supply Falls Short On Exchanges As Whale Manipulation Spikes

It has often been observed that big retail investors sometimes start accumulating to provide the whales with increased liquidity. The historical trend shows that there is a short-term drop in Bitcoin prices whenever this accumulation occurs, eventually leading to whales accumulating more aggressively.

It may come as a surprise to some participants, but it is extremely easy to manipulate the market sentiments, especially by the big players, to the extent to which the prices are impacted as well.

The data from the crypto market analytics platform Santiment discloses that the percentage of the circulating supply of Bitcoin (BTC) on crypto exchanges has dropped to a four-year low in October as the whales continue to accumulate.

With more and more coins getting transferred out of exchanges, BTC’s trading venues’ circulating supply has dropped to 8.7%. Santiment emphasizes that this trend is similar to levels last seen in November 2018.

Contrary to BTC’s data, the data for the supply of Ether (ETH) on exchanges shows an upsurge before the ETH Merge that was completed last month. The ETH held on exchanges stands at 14.5% of its circulating supply. While this is relatively high compared to BTC held, it is still less than the approximate 16% supply reached in the last month ending, given the merge hype.

Santiment tweeted, “Bitcoin is seeing more and more coins moving away from exchanges in the month of October, matching levels last seen in November 2018. Meanwhile, Ethereum’s supply has fluctuated a bit higher after a big influx moved to exchanges before the merge.”

Are the Whales Manipulating The Market?

The level of circulating supply with regard to the top two crypto tokens points out an increase in whale movement in their respective markets. Earlier, Santiment had noted that the whale wallets holding between 100 and 10,000 BTC cumulatively added 46,173 BTC in a week- this is not a common trend in the crypto space.

Similarly, a CryptoQuant analyst alleged that ETH whales might have manipulated the market with their exchange activities. However, the argument remains open-ended, as even though many whales are exiting the exchange, the prices of BTC and ETH have continued to swing.

Currently, BTC is trading at around $19,110, up by 0.17% in the last 24 hours. ETH is trading at $1294, up by 0.93% in the previous 24 hours, as per data from CoinMarketCap.

Recent Whale Activity

Last week, a crypto whale unexpectedly moved BTC valued at hundreds of millions of dollars in two separate transactions. As per the crypto whale-watching platform Whale Alert’s data, the heavy-pocketed investor initially moved 11,299 BTC worth about $228 million between two unknown wallets. About eight hours after this, the investor moved 14,545 BTC worth nearly $290.5 million.

Data from the crypto exchange platform Blockchain.com revealed that the whale wallet has both sent and received over $3 billion worth of the top virtual asset by market cap throughout 309 different transactions on the BTC blockchain.

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