The day of this May 18 was marked by an impressive fall in the price of Bitcoin in a matter of hours, reaching around US $ 38.5K. Meanwhile, what did the Bitcoin whales do? This is what we will answer next in this daily summary. As of this writing, BTC is worth US $ 39,577, representing a loss of 12.86% in the last 24 hours. In this scenario where Bitcoin falls, we can speculate on what the whales could do next with their cryptocurrencies and for this, we analyze their recent activity.
Bitcoin Whales in Daily Roundup of Highlights As Crypto Crashes
The first thing that we should note as interesting is that while on May 17 more than 100K BTC were mobilized between unknown wallets, during May 18 there was no operation in this regard. It would be the first time this has happened in months.
Thus, the trend of introducing liquidity in the market would become the predominant one. According to Whale Alert reports on Twitter, of the 11,869 BTC mobilized on this day, 4,985 BTC were transferred from unknown wallets to exchanges, possibly for sale.
Next, the second strongest trend was the transfer between exchanges, for a total of 4,000 BTC mobilized through two operations. This represented 33.70% of the daily total. Finally, the whales carried out four accumulation operations, through which 2,884 BTC passed from exchanges to unknown wallets (24.30% of the daily total).
It must be recognized that the activity was quite limited when compared to previous days. Nonetheless, context can explain much of this caution on the part of Bitcoin whales.
What happened this Tuesday was interesting. On this day, ‘extreme fear’ took hold of the Bitcoin market after the fall in prices, according to the sentiment indicator. This change in market sentiment came after the BTC price crash last week. There were no variations on this during May 18.
The Crypto Fear and Greed Index, a metric that measures current sentiment in the BTC market, has fallen to “extreme fear” levels not seen since April 2020. The index is now at 23, below the “greedy” level. from 74 last week, according to Alternative’s report and cited by Arcane Research, a Norwegian analytics firm.
«The past week was filled with fear, uncertainty and doubt, and the price of Bitcoin plummetedArcane analysts wrote. «In the past, an extremely fearful market like this has historically presented strong buying opportunities during bull cycles.». This is probably what we will see soon from the whales that had taken their tokens to exchanges for possible sale.
Other key points about what happened
Another event that can help us understand what is happening is that the financing rates in the Bitcoin derivatives market turned negative. In other words, financing rates fell below 0% on two separate occasions in the past week.
The first, during the massive sale of May 12. The second occurred on Monday as the market reacted to Tesla CEO Elon Musk’s latest comments about the cryptocurrency. By Tuesday, according to the report, the funding rate had returned to neutral territory.
Likewise, Arcane highlighted that short-term price volatility has risen to the highest level since February. The 30-day volatility is now at 4.5%, indicating that the price of Bitcoin has moved 4.5% every day for the last month, on average. In this scenario, we recommend caution when operating with Bitcoin, since while the cryptocurrency falls, things tend to get somewhat crazy in the market.