In the backstage of the cryptocurrency market, an intriguing scenario is unfolding. Bitcoin (BTC) and Ethereum (ETH) whales are showing contrasting behaviors, shedding light on the future of these digital currencies.
According to data from Glassnode Explorer and analysis by James V. Straten, Ethereum whales, investors with 1,000 ETH or more, are adopting a bearish stance.
Over the past twelve months, these whales have sold a total of 12 million ETH, as evidenced by on-chain market data. Currently, they hold a total of 58 million coins, representing a significant decrease of 74% compared to the historical peak of 78 million ETH in 2020.
In contrast, Bitcoin whales, who own 1,000 BTC or more, are demonstrating a bullish behavior, something that has been a constant over the years.
Although they briefly reduced their holdings during the bullish market of 2021 to realize profits and in 2022, during the turmoil caused by the FTX exchange collapse, they resumed accumulation in 2023.
Bitcoin and Ethereum
Currently, Bitcoin whales hold only 3% less holdings (76 million BTC) compared to the historical peak of 78 million BTC reached in 2022.
This remarkable disparity in behavior between Bitcoin and Ethereum whales reflects the differences in price performance that these two leading cryptocurrencies have shown in 2023.
The accumulation of Bitcoin whales has been a key factor in the currency’s appreciation this year. On the other hand, the significant sales from large Ethereum investors have impacted ETH’s performance. As a result, these two cryptocurrencies have recorded increases of 65% and 30%, respectively, over the year.
Given that whales move large volumes of coins, their behaviors have a great influence on the market. Straten warns that “significant and persistent selling pressure is forming in Ethereum.” If supply outweighs demand, the price of ETH could drop.
On the other hand, the continuous accumulation of Bitcoin whales may boost the price of the currency or, at the very least, stabilize it. With several technical resistances in sight, some analysts believe that this strategy could be decisive for the future of Bitcoin.