Bitcoin (BTC) fell rapidly from $30,000 this week, reaching a low of $28,861, and is currently fluctuating above the night of February 9. On-chain data found that whales remitted large amounts of Bitcoin and Ethereum to exchanges shortly before the big fluctuations.

After oscillating in the $30,000 range for a long time, Bitcoin fell sharply on the 25th, reaching a low of $28,861, a new low since late June. In the past two days, it has continued to fluctuate above $29,000, and is now at $29,259 at press time, up 0.44% in the past 24 hours.

Are smart whales dumping coins and dragging down the price?

As for the reason for the BTC price drop this time? Some people in the community suspect that it is because the whales chose to sell at a high point because they expected the Federal Reserve to continue to raise interest rates by one basis point this week.

According to the on-chain data website Lookonchain, a few hours before the sharp decline on the 25th, a giant whale transferred 1,087 bitcoins to the Binance exchange. And historical data shows that the giant whale absorbed more than 38,000 bitcoins at the end of 2022 (the average price was $19,267 at the time), and has sold nearly 15,000 bitcoins this year.

Apart from the fact that his Bitcoin holdings have risen by nearly 40%, he has already cashed out more than $400 million this year, and his operating performance is enviable.

And it is worth noting that after tracking one of his large wallets, it was found that he currently has at least over 24,000 BTC. If he continues to sell off in the future, it may further intensify the selling pressure of BTC.

Ethereum whales also arrived

As for Ethereum, Lookonchain also tracked a whale who deposited 16,751 ETH into Binance and sold it on the 25th, cashing out $30.8 million, with an average selling price of $1,840. (Current price is about $1,858)

Bitcoin long-term hodlers hold 75% of circulating supply

However, despite the recent frequent activities of whales, they seem to be very good at buying low and selling high. According to a tweet by Glassnode this week, the holdings of Bitcoin by long-term holders have reached a record high of 14.52 million Bitcoins, accounting for 75% of the circulating supply. It can be seen that Bitcoin is still the preferred choice of many long-term investors:

Bitcoin holdings by long-term holders have reached a new high of 14.52 million Bitcoins, equivalent to 75% of the circulating supply.

This shows that long-term holding has become the preferred investment strategy for mature investors.