After the 2022 downtrend, the cryptocurrency industry finally got back on track. The past few months have been significantly favorable for Bitcoin [BTC] and the rest of the market. Whales in particular have become significantly more active compared to 2022.
Recent data showed that a majority of the largest trades of 2023 took place in March. Earlier today, a whale reportedly transferred a total of 20,000 BTC worth about $564 million. While trades of this size are usually favorable to the price of the King Coin, it should be noted that “the great influx of coins” was moved back to the exchanges.
Santiment commented how, it’s encouraging to see that in March both the total number of active sharks and whales increased [yellow] and the number of sleeping whales/exchange addresses [red] are continuously increasing. However, the yellow line, which is believed to be the most valuable, is now rising significantly more slowly than in November and December when prices were at their lowest. Expanding further, the on-chain analytics firm wrote:
“Based on the very large transactions happening in March, and the fact that the 10-10k BTC address tier continues to slide down (by percentage) and decrease (by total number of addresses), it appears that there are some legitimate warning flags are to be weary if you hope to see Bitcoin rise to $35,000 and beyond.
In addition to these whales, institutions were also seen pouring money into the market. A recent CoinShares report pointed out that Bitcoin was experiencing weekly inflows worth $127.5 million. Therefore, the upcoming or ongoing rally is said to be supported by whales, both institutional and retail.
Is There Room for Correction in the Bitcoin Market?
Bitcoin miners were finally out of the 2022 slump. These miners reportedly won a whopping $718 million in March. This is their highest earnings since May 2022. In addition, Bitcoin’s hash rate rose by 20% since the beginning of March. All this pointed to how miners have remained active in the market.
However, according to data from CryptoQuant, the Miners’ Position Index [MPI] was on the low side today. This majority emphasized the outflow the mining space is experiencing.
While miner earnings remain high, fears of increased selling pressure continue to haunt the market. Given that the fiscal year is coming to an end, the likelihood of a miner sell-out increased. Therefore, it is expected that the community will undergo minor corrections before another breakaway rally takes place.