Bitcoin Whale Addresses Drop Amid Profit Taking
Bitcoin’s “rich list” has shrunk over the past month amidst the ongoing rally, as more and more investors seek to take profits on their gains.
According to a report by CoinDesk, the number of bitcoin wallets holding at least 1,000 BTC has fallen by 8% since the beginning of February. The report cites data compiled by on-chain analytics firm Glassnode to show that retail investors and whales have been active in profit-taking over the last several weeks.
Popular trader and market analyst Lark Davis tweeted a similar take on the drop in “rich list” addresses, saying it did not indicate the bull run was coming to an end.
The report also indicates a general weakening in buying pressure from the largest investors, pointing to the “Coinbase premium” phenomenon which has also been in decline.
According to the metric, decreased demand for BTC on Coinbase relative to Binance indicates a drop in institutional investor interest, as the latter prefers to use regulated exchanges.
The report reads:
The price since early January was predominantly retail, a fact highlighted by the [five times] more sign-ups on Binance compared to Coinbase.
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