Capitulation? Bitcoin ($BTC) Whale Holdings Drops to 29-Month Low

Cryptocurrency prices have dropped significantly so far this year and even though the price of the flagship cryptocurrency Bitcoin ($BTC) appears to have stabilized over the last few weeks around the $19,000 mark, whale holdings have been steadily dropping.

According to a tweet published by on-chain analytics firm Santiment, the amount of BTC held by whales has been dropping over the last 11 months as fears of inflation and a financial recession keep on growing.

Per the firm, addresses holding 100 to 10,000 BTC have lowered their percentage of supply held of BTC to a 29-month low amid their distribution of tokens. The last time whales have held onto such a low amount of BTC was in April 2020, during a sell-off triggered by the COVID-19 pandemic.

Notably, Glassnode data has shown the that number of addresses at a loss on the BTC network has reached a new all-time high near the 19 million mark, with the previous all-time high being observed in early July. Activity across the Bitcoin blockchain has been trending downward as well, while dormant supply keeps rising.

As CryptoGlobe reported, a mysterious BTC whale or whales has been moving a large amount of coins that had been dormant for a decade, according to data from the Bitcoin blockchain, which shows some long-term holders are moving their stash during the bear market.

While the data appears to be showing signs of cryptocurrency investors capitulating, some analysts remain bullish on BTC. Bloomberg commodity strategist Mike McGlone has recently said that Bitcoin and U.S. Treasury bonds are both dropped to “extreme discounts” amid the Federal Reserve’s hawkish moves to tame inflation.

Year-to-date bonds, stocks, and cryptocurrencies have all plunged while commodity prices rose over macroeconomic factors and Russia’s invasion of Ukraine. The analyst noted that as the Federal Reserve keeps hiking interest rates, investors can expect further corrections down the road.

Despite Bitcoin’s poor performance year-to-date, McGlone has recently reiterated he believes that the price of the flagship cryptocurrency will hit the $100,000 mark. Per the analyst, it’s a “matter of time” until Bitcoin reaches six figures.

Interestingly, the number of Bitcoin addresses with small holdings on the flagship cryptocurrency’s network has recently hit a new all-time high, with blockchain data suggesting that investors who were previously on the sidelines are now moving in.

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