Key Takeaways
- Crypto whales reportedly selling off their positions on Deribit.
- Redeemed stablecoin hit new All Time High level.
- Whales action is not good news for retail investors.
NIGERIA (Coinchapter.com) – More and more Bitcoin tokens are leaving cryptocurrency exchanges as their price declines below $48,000, according to data compiled by blockchain analytics firm CryptoQuant.
The platform revealed that the percentage of Bitcoin balance across crypto exchanges reached a 4-year low of 11.98% this Monday, a level last seen in Jan 2018 ahead of the yearlong bear market.
Whales are cashing out
In line with the analytics provider’s revelation, they further discovered that the number of redeemed stablecoins hit an all-time high. It is a primary indication that some whales have been cashing out.
However, analysts are unsure of the reason behind the action. It is not clear if the whales are cashing out ahead of the market’s volatility in response to the December 16th Federal Open Market Committee (FOMC) announcement. However, it is also one of the uncertainties.
“So far, we still are careful until some uncertainties will be resolved,” a CryptoQuant analyst said.
What does this mean for crypto prices?
It’s worth noting, though, that this doesn’t necessarily mean that the whales in question have been selling BTC now. Ideally, a massive dump of coins by whales is a negative indication. However, crypto prices rallied in recent days.
Only yesterday, Bitcoin price hit an intraday high of $50,800 before getting rejected and pulling back down to where it currently trades near $48,700.
However, the data received from the said actions of crypto whales is undoubtedly not good news for crypto investors, especially at the retail level.
