On-chain data shows bitcoin whales were the main sellers in the latest crash with over 1k BTC, as other groups displayed muted activity.
Bitcoin spend output value band shows spike from 1k-10k group
As told by an analyst at Cryptoquant PostUnlike the previous drop, the 10-100 BTC and 100-1k BTC groups did not show any increase in activity during the latest crash.
The relevant indicator here is the “Spent Output Value Band” (SOVB). Which displays the number of coins being moved by each price band in the bitcoin market.
These “price bands” or groups are divided based on the amount of coins transferred in each transaction on the chain. For example, the 1k-10k BTC value band includes all transfers involving between 1k and 10k BTC.
The spent output metric for this price band then specifically measures the total amount of bitcoin that was transferred using transactions of size falling in this range.
Now, here is a chart that shows the 10-100 BTC trend in Bitcoin SOVB:
The value of the metric seems to have been normal recently | Source: CryptoQuant
As you can see in the graph above, during the last sell-off, the Bitcoin Spent output chart for the 10-100 BTC price band rose, indicating that investors holding at least 10 to 100 BTC were heavily selling their coins. Was doing.
A similar trend was observed for the 100-1k BTC price band as shown in the chart below.
Looks like this metric has also not significantly gone up in recent days | Source: CryptoQuant
In the recent crash, however, there was an increase in these indicators, but it was nowhere near as sharp as the previous examples. This suggests that these value bands have not witnessed much dumping this time.
However, the 1k-10k BTC group has shown a different behavior. The output graph spent for this value band is given below.
The indicator has shot up | Source: CryptoQuant
As evident from the chart, the 1k-10k BTC price band recorded a significant amount of movement during the crash, indicating that transactions above 1k BTC are responsible for most of the selloff this time around. Such large transfers are from whales, which means that whales caused this accident.
While whale dumping is negative for the market, volume suggests that the decline in the other two groups could be a sign that the selling pressure in the bitcoin market is now almost over.
At the time of writing, bitcoin is priced around $17.1k, down 15% over the past week.
BTC plummets down | Source: BTCUSD on TradingView
Featured image from Georg Wolf on Unsplash.com, charts from TradingView.com, CryptoQuant.com