If Everyone Buys Bitcoins, Who Sells?

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Some whales have been buying thousands of Bitcoins over the past few weeks. The fact that this demand does not raise the price indicates that large-scale transactions were also carried out on the sales side of the business. A cryptocurrency analyst explained that these transactions may be made by hedge funds.

Of course, “not everyone” is buying Bitcoins. However, looking at the mobility in wallets such as Coinbase Pro and Coinbase Custody, it can be concluded that whales are buying large amounts. According to the analysis of the CryptoQuant CEO, these whales not only buy BTC but also do HODL.

Meanwhile, it is known that MicroStrategy continues to grow its balance sheet.

The price has been dropping for two weeks

Bitcoin price rose 26% in one month. Therefore, it is not correct to say that the purchase made by whales is not reflected in the price at all. However, the price has been falling for two weeks, despite the fact that purchases have not stopped. Who balances and even suppresses this demand on the buy side on the selling side?

Short-term whales on the move

To answer this question, on-chain analyst Willy Woo looked at the balance changes of Bitcoin addresses and how quickly they were trading.

Data from Glassnode shows that wallets with 1,000 to 10,000 Bitcoins are starting to sell.

Looking at how the “age” of the coins in the Bitcoin addresses changes during the sales period, it is seen that most coins are ‘young’. These coins were not HODL made for a long time and then sold; It was bought recently and sold in a short time.

What could have triggered the sales trend?

These on-chain data show that sales transactions may be made by whales who have invested short-term. Although it is not possible to make a definite interpretation as to the reason for this, it is always possible to guess.

These coins are sold by hedge funds that have bought BTC in the near term, according to Willy Woo’s estimates. It is estimated that these funds do not want to take any further risks for Bitcoin, which has already risen to over $ 48,000, and are preparing themselves for the first quarter report. Woo’s explanation is as follows:

“Hedge funds started rebalancing their portfolios before the first quarter ended. Most hedge funds; If too much is invested in a single asset, it will be instructed to go for rebalancing and BTC has gained a lot of value lately.