A recent report from highlighted a disturbing trend among early Bitcoin investors that may explain why the price of Bitcoin is permanently declining. Early Bitcoin whales holding thousands of BTC have begun selling their sizeable stash, according to data from on-chain data analysis platforms. But even after a month of consistent dumping, it looks like these big investors aren’t done yet, and more pain could be in store.
Bitcoin whale releases billions of dollars into market
As reported by , two early Bitcoin whales began moving their holdings to centralized exchanges in October. This sell-off continued into the new month, and by the first week of November, these two whales had transferred over 16,000 BTC to exchanges. In total, BTC was worth over $1.7 billion, demonstrating the considerable selling pressure Bitcoin was facing at the time.
After these initial declines, the sell-off seemed to slow down in early November, but this did not last very long. On-chain data platform Lookonchain reported that the whales are back together again, and this time one whale is back and appears to be selling off its remaining holdings.
Bitcoin OG Owen Gunden is at the center of this sale, having recently moved the last of his sizeable Bitcoin holdings to a centralized exchange. Gunden transferred a total of 3,549 BTC worth $362.84 million to the Kraken exchange at the time of the transaction, after previously transferring 600 BTC worth $61.17 million. In total, Gunden transferred 11,000 BTC worth $1.12 billion to the exchange, presumably to sell.
Why are sales soaring?
As these early Bitcoin whales begin to move and cause significant selling pressure on the market, the question arises as to why these investors are choosing to sell now after waiting all this time. This comes as the $100,000 level remains under threat and these multi-billion dollar sales could trigger a bear market.
While members of the crypto community are looking for some deeper meaning from this crash, crypto influencer Woody Wertheimer has a short and to the point answer: OG is simply profiting. These whales bought BTC when it was very cheap and have been holding on to their stash for about 15 years. It’s no surprise that these whales sell their profits for cash, as they have grown significantly since then and most are now billionaires.
Wertheimer explains that what investors should really be asking is not why the whales are selling, but rather, “Why isn’t BTC price down -70% when so many OGs are selling?” Given the strength Bitcoin is showing amid the selloff, the crypto influencer believes “that should keep the bears up at night.”
Featured image created by Dall.E, Charts from Tradingview.com
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