Analytics firm Santiment recently posted a blog alerting Bitcoin holders that the large whale movements in the market could potentially be a cause for concern. The five largest Bitcoin transactions of the year all occurred during March, and the largest one had a value of $564 million. The decrease in Bitcoin’s whale and shark population is suggesting that these market entities may be locking in gains due to the prior ~+70% rebound of Bitcoin.

The blog also shared a graph that showed the fall in the ratio of the Bitcoin supply held by sharks and whales, even though Bitcoin is still trading for around $28,647. This could be a sign that large entities may be taking profits due to fear of a cryptocurrency market top.

It is important to note that the context of these whale movements should not be viewed in isolation. As indicated by previous market behaviour, whales can often cause a short-term pullback in the market, again due to the fear of a top. However, Bitcoin could still continue its upwards trajectory even after a slight dip. Therefore, investors should remain aware of the potential ramifications of these actions, but not place too much emphasis on it.

Whales come in many shapes and sizes, and the actions of one particular whale may not necessarily reflect the whole market. Multiple high-profile whales have had a significant impact on the crypto market and it is important to remain vigilant and mindful of their actions. In addition, a range of market factors, such as global macroeconomic news and geopolitical developments can also resonate within the cryptocurrency market. Therefore, crypto investors should be aware of these nuances and be prudent when making decisions around their trading portfolios.



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