Bitcoin Price Recovery Lacks Whale Participation, Onchain Data Show

Bitcoin’s price has bounced back by 3% following its dip close to $61,000 during the weekend. Nevertheless, large investors, known as whales, have not shown significant buying interest in this recent market upturn.

According to IntoTheBlock’s “large holder netflow” analysis, approximately 3,000 Bitcoin worth around $198 million have been added to the wallets of those holding at least 0.1% of the total Bitcoin supply today. This is a much smaller increase compared to the nearly 80,000 Bitcoin or roughly $5.3 billion that flowed into these wallets following the March 20th dip below $61,000.

Based on IntoTheBlock’s analysis, large investors, referred to as whales, have a knack for identifying optimal market entry and exit points by either amassing or disposing of significant amounts of coins. Analyzing the netflow indicator provides valuable information about the actions and thoughts of these major traders, shedding light on the durability of the current trend.

If whales are not contributing to the bitcoin market recovery, it’s probable that they anticipate a more significant price drop. Last week, Bitcoin experienced a 5% decrease due to several factors: the strengthening dollar index and escalating tensions between Iran and Israel led investors to move their funds from riskier assets such as stocks and cryptocurrencies, and instead opted for safer investments like gold.

According to IntoTheBlock’s analysis, the netflow indicator is significantly influenced by wallets linked to U.S. exchange-traded funds (ETFs). Traders are advised to keep a close eye on ETF transactions on Monday.