Bitcoin Whales On The Move In March, Is It A Good Sign?

Mar 31, 2023

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Bitcoin whales have been on the move this March, but it’s unsure what this means for the market.

Bullish Market

After a downtrend in 2022, the cryptocurrency market has been showing signs of recovery in recent months, especially for Bitcoin (BTC). Whales, which are investors with significant holdings, have become more active in comparison to the previous year. According to recent data, March 2023 has seen a , including a reported 20,000 BTC worth about $564 million transferred by a whale.

🐳📊 The five largest transactions of 2023 thus far have all happened in March, with the latest one being a 20,000 transfer today (worth ~$564M). Check out our latest insight on the engaged whale addresses and fluctuating whale supply. 👀👇

— Santiment (@santimentfeed)

In addition to whales, institutions are also investing in the market, with a recent CoinShares report showing that Bitcoin had weekly inflows worth $127.5 million. This indicates that the current market rally is being driven by the activity of large investors, both institutional and retail traders.

Bitcoin Miners Also Gaining Profits

Bitcoin miners have also seen an increase in profits, earning $718 million in March, which is their highest earnings since May 2022. Moreover, the hash rate of Bitcoin has increased by 20% since early March, showing that miners have remained active in the market.

However, despite these positive developments, there are concerns about potential corrections in the market. The Miners’ Position Index (MPI) has been on the lower end, indicating that miners may sell their holdings, causing a sell-off that could affect the market. As the fiscal year comes to an end, the possibility of a miner sell-off may increase, leading to slight corrections before another potential breakout rally.

Caution Flags in the Market

There are also concerns about caution flags in the market, despite the recent surge. On-chain analytics firm, Santiment, notes that the rising activity from sharks and whales is much slower than when prices were bottoming out in November and December. Moreover, the percentage of Bitcoin supply held by these entities is decreasing, and there is a slide down in the 10-10k BTC address tier. These caution flags suggest that Bitcoin may not surge to $35,000 and beyond, as some investors may hope.

Large transactions have also been moving back onto exchanges since March 13-21, indicating profit-taking and fears of a potential market top. While it is encouraging to see that the total number of active sharks and whales is still rising, these caution flags suggest that investors should be wary of the potential for corrections in the market.

Summary

Overall, the cryptocurrency market, particularly Bitcoin, has experienced a resurgence in March 2023. However, investors should exercise caution due to the potential for corrections, the decrease in the percentage of Bitcoin supply held by large entities, and the potential for a miner sell-off. Despite these concerns, the market is showing positive signs, driven by the activity of whales and institutions.

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