Such data: Bitcoin whales’ behavior in bear market 2022 was not as smart as it should have been
While the behavior of Bitcoin whales in the market continues to influence the decisions of a wide range of new investors, a review of the data shows that the behavior of this group of large investors during the bear market of 2022 was not as smart as it should have been.
To Report NewsBTC, data from LookIntoBitcoin indicates that whales did not enter the market in time in 2022. They started piling up long before Bitcoin’s price plunged to $15,300 in November.
Available data shows that whales started buying bitcoin in a rush from around $35,000, and a large portion of these buyers sold their holdings at a loss at the end of last year as the price began to decline.
The behavior of whales, wallet addresses with at least 1,000 bitcoins, is often monitored and small investors and traders tend to imitate their behavior.
Since whales are thought to be mostly early adopters (buyers) or institutions, small investors may confuse them with expert traders or experienced people in the field of digital currencies, and some may be inclined to follow their decisions in the market. .
A large portion of the people who lost money in 2022 were those who made decisions based on whale behavior; Because, after the massive buying of Bitcoin at the $35,000 price limit, the markets ended up crashing.
The market may be new to this category of investors and traders with less than 10 bitcoins in their balance. They may be active traders or investors looking for various opportunities to buy Bitcoin. b
Some of them synchronize their decisions with the activities of such whales; Because the transparent nature of public blockchains like Bitcoin means that all activity can be tracked, which is what most investors did last year.
Aside from the whales being dumped by the market, data from China shows that these big Bitcoin investors are selling their holdings. This event is an interesting development and unlike the past events.
In previous bear cycles, whales behaved in the opposite way, and whenever investors were selling their holdings at a loss, they started buying bitcoin in droves. By buying cheap, they would collect more bitcoins and expand their market share. However, this has not happened in the current period.
The decrease in the number of whales coincided with the fall in the price of Bitcoin, which meant that many of them left the market. It seems that the whales, like retail investors, were worried about the conditions of the markets and preferred to stay on the sidelines until prices recovered.
The price of Bitcoin has grown since the whales exited the market, rising from its 2022 low to $25,000 in February 2023. However, in the current situation, analysts have different opinions regarding a possible price increase and test of the $30,000 area or correction to the $17,000 support area.