Bitcoin Whale Wallets Hit New Highs as Market Reflects Post-FTX Reality

• Bitcoin’s price has experienced a pullback, remaining under pressure near the $70,000 mark.
• Over the past week, Bitcoin has dropped more than 4%, trading around $66,000 currently.
• Notably, wallets holding 10 or more BTC have surged to their highest levels in two years, indicating significant market trends.

Discover the recent trends in Bitcoin as whale wallets soar to pre-FTX collapse levels, indicating shifts in market dynamics.

Whale Wallets Mirror Pre-FTX Collapse Levels

Recent analysis by Santiment reveals Bitcoin’s price has appreciated approximately 226% since the last comparable period. As of June 16, 2022, wallets with 10 or more BTC held 16.16 million BTC, equivalent to 84.8% of the Bitcoin supply.

Fast forward to June 16, 2024, and these large wallets still control 16.16 million BTC, or approximately 82% of the total Bitcoin supply.

Insights suggest that the fall of FTX and its former CEO, Sam Bankman-Fried, may have previously skewed the natural market forces, leading to speculation about price manipulation. Post-FTX, a clear link has emerged between the holdings of these significant wallets and the overall Bitcoin market cap.

“Since FTX’s downfall in November 2022, there has been a noticeable correlation between the holdings of 10+ BTC wallets and Bitcoin’s market value.”

This indicates that the operations of FTX might have disrupted the typical correlation between whale buying/selling habits and market prices. In contrast, post-collapse data shows a more evident connection between large Bitcoin holders’ activity and overall market valuation.

Santiment’s data backs the theory that FTX’s market activity was an outlier, and its collapse has reinstated the influence of whale wallets on Bitcoin’s price movements.

Market Manipulation Claims

Former FTX CEO Caroline Ellison testified in the FTX trial, revealing mass Bitcoin selling tactics used to suppress Bitcoin’s price below $20,000.

A document presented as evidence included instructions to, “Keep selling BTC if it’s over $20k,” suggesting deliberate market manipulation by Sam Bankman-Fried and other FTX executives.

This revelation has led many to suspect that Bitcoin’s price ceiling during the 2021 bull run was artificially kept low, curbing its potential to cross the $100,000 threshold.

Conclusion

In summary, the fallout from FTX has significantly realigned Bitcoin’s market dynamics. The link between whale wallet holdings and Bitcoin’s market value is now more transparent, suggesting a return to more organic market behavior. Investors should continue to watch these key metrics for future trends and fluctuations.