Long-term whales who held their Bitcoins (BTC) for more than seven to ten years they have been reselling them for the first time from Earth (MOON) collapse in May, as indicated by the age groups of the volume spent (SVAB).
Spent Volume Age Bands (SVAB) is a chain transfer volume separation based on the age of the coins. Each band represents the percentage of the spent volume that was previously moved within the time period indicated in the legend.
The graph above shows the total transfer volume of coins that were last active between seven and ten years. The graph below, on the other hand, shows the same data for coins that have been standing still for over ten years.
Both charts start from October 2020 and show sales on a monthly basis. The effects of the Earth crisis can be seen on both charts, with the volumes spent peaking in May. The same peak can also be seen in September 2022, particularly for Bitcoin, which was last moved between seven and ten years ago.
Are the whales running out?
Whales are considered smart money within the Bitcoin ecosystem as they have managed to withstand almost all bear market cycles. Additionally, these keepers have survived countless massive wars and FUD attacks.
Whales between the ages of seven and ten recorded their fifth and sixth highest transactions of the year in September.
Even though whales over the age of ten have no annual highs, the chart shows a notable increase in sales. Since whales over a decade old can understand market cycles better than any other cohort, their sales indicate bearish sentiment.
Decline in whales
In addition to the sales, the numbers also show a decrease in the number of whales.
Individuals holding at least 1,000 Bitcoins are referred to as whales, and their numbers have declined since the peak of the 2021 bullish cycle, which occurred in January 2021. Even though it was the peak, January was only the beginning of the bull run. However, most of the whales cashed in January.
The recorded decrease in the number of whales from January 2021 to July 2021 is understandable due to the 2021 bull run. Between July 2021 and April 2022, the number of whales increased as the price of Bitcoin also became somewhat stable between $ 60,000 and $ 40,000.
However, Bitcoin continued to drop after April 2022. Even with falling prices, the number of whales dropped from 2,150 to 1,695. The last part is particularly interesting as whales tend to wait for winter prices.
The decline in whales and the high number of sales, despite the low prices, indicate a bearish sentiment, but there is a positive side. The sales and disappearance of the whales mean their Bitcoin is being distributed to more than one person.
This means that Bitcoin is concentrated among fewer and fewer individuals. In the long run, having a more distributed Bitcoin benefits the retailer and increases network security.