As expectations for a Bitcoin (BTC) spot ETF grow and the next halving approaches, a rally in the cryptocurrency market has been ignited. Amidst the price surge, questions are arising about whether recent BTC sales by some investors indicate an impending downturn. Notable crypto analyst Ali Martinez revealed on December 22 that Bitcoin whales sold approximately 50,000 BTC worth $2.20 billion over the past week.
These sales have sparked rumors in crypto circles that the Bitcoin rally may be nearing its end, raising concerns among investors. However, the real reason behind these large sales might be different and may not necessarily trigger a price drop. Instead, it could be attributed to the desire to take profits following the significant upward trend in Bitcoin prices over recent weeks.
The notable rise in Bitcoin prices has caught the attention of both institutional and individual investors. This has allowed some long-term holders to capitalize on the opportunity to realize significant profits. Despite various speculations, the exact reasons behind the whale transactions remain as rumors without concrete evidence.
The profit-taking by whales seems to align with Bitcoin’s 89% profitable supply rate before the end of the year. According to a post by Santiment on December 21, a potential shift in this metric to the 40-70% range could create a more favorable environment for potential price increases in BTC.
At the time of writing, BTC is trading at a price of $43,653, with a 0.8% decrease over the last 24 hours. Despite today’s minor drop, the price has increased by 4.07% over the last seven days, and a 17% rise has been observed over the past 30 days. Since last December, BTC’s price has seen a significant increase of over 160%, outperforming 72% of the top 100 cryptocurrencies over the past year. Whether the price will reach the closely watched $50,000 level by the end of the year remains a subject of speculation.
Overall, while Bitcoin’s recent price movements and whale activities have stirred market speculation, the long-term outlook and potential triggers for price changes remain a mix of strategic profit-taking and market anticipation.