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The majority of whales holding BTC are starting to show signs of exiting on exchanges, putting the market’s most powerful cryptocurrency in jeopardy.
As reported by CryptoQuant, during the recent bear market, the number of whales holding Bitcoin is rapidly falling to the lowest level since the beginning of this year. Wallets that hold large amounts of BTC mostly transfer their Bitcoin reserves to exchanges.
The daily volume of Bitcoin pouring into CEX exchanges recorded on May 8 is more than 1750 BTC, surpassing a 3-month high of 1720 BTC. The high number of Bitcoin deposited on the exchange shows that whales are looking to exit the market by selling most of their BTC holdings.
In particular, on the morning of May 10, stable coin UST evaporated 40% of its value and reached $0.68, causing the Luna Foundation Guard fund to release a large amount of BTC to the market to rebalance its value. The total amount of Bitcoin that LFG is holding worth more than 3 billion USD has been put on the exchange market. This created strong sell-off pressure for the market this morning and dragged BTC to a bottom of $29,900.
Losing Bitcoin supply still hits “alarming” levels. If the number recorded on April 28 falls around 7.6 million BTC, it has reached 7.7 million BTC so far – marking the highest level since the same time before 2020.
The latest crash caused $117.84 million to be liquidated in the derivatives market, centered on BTC and ETH, with the majority of liquidations coming from longs (over 80%).
The prospect of an unfavorable market has also pushed the Fear and Greed Index of Investors to a rapid decline to 11, corresponding to “Extreme Fear”. Therefore, the danger of imminent selling pressure on a large scale can be quite high.
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