Despite the increasing institutional demand for Bitcoin, on-chain metrics show that whales have been selling a massive number of tokens over the past few weeks. If the selling spree goes on, BTC could fall nearly 30%.
Mt. Gox continues playing a key role in Bitcoin’s price trend. Although some of the newcomers into the crypto market may not know about this exchange, the so-called crypto “OGs” will never forget about it. The Japan-based platform used to handle about 70% of all BTC transactions.
But in February 2014, it suspended all trading services and filed for bankruptcy protection. The move came after a hacker stole 850,000 Bitcoin of its customers. Since then, Mt. Gox has been stuck in legal battles as its former users have been looking for various ways to get compensated for their losses.
Recently, a trustee appointed by the Tokyo District Court is set to distribute about 150,000 Bitcoin among Mt. Gox’s creditors. The rehabilitation plan will start on December 15th. The injection of nearly $3 billion worth of BTC into the market could create next major correction.
The potential spike in selling pressure will be combined with the millions of dollars worth of BTC that some of the so-called “whales” have been selling on the market. Santiment’s holder distribution chart indicates that since November 18th, the number of addresses owning 10,000 to 100,000 BTC fell significantly.
Roughly seven whales have left the network or redistributed their tokens, representing a 2.7% fall over a short time period.
The decreasing number of whales on the Bitcoin network may look insignificant at first glance. Still, when considering that they hold between $190 million and $1.9 billion in BTC, the rising downward pressure can translate into billions of dollars.
Institutional demand continues rising
Regardless of selling Bitcoin by whales, institutional demand continues increasing. One of the largest known Bitcoin owners announced that it plans to increase its exposure. Business-intelligence firm Microstrategy said that it aims to buy more than $400 million worth of BTC.
For this reason, the bullish perspective cannot be taken out of the question yet. A daily candlestick close above the recent all-time high (ATH) of $19,915 will help invalidate all the pessimistic scenario. Under such circumstances, BTC could shoot up to $24,000 or even $30,000.