I just came across this article: crypto whales have sold off billions in Bitcoin in the last month. In the past, that kind of action would’ve sent everyone into a panic and caused a major selloff. But it seems like now we’ve got big institutional players stepping in to cushion the blow.
So here’s what I’m curious about:
- Are we moving into a new phase where whale sell-offs don’t ruin confidence because institutions are ready to scoop up the dip?
- If that’s the case, maybe those recent "dumps" aren’t something to freak out about, just a normal part of market adjustment.
- But what if those institutions are just postponing the inevitable drop instead of stopping it?
I’d love to hear your thoughts: do you think these whale sell-offs are red flags, or signs that the market is maturing and becoming more resilient?
Whale sell-offs: should we be worried or is this just the norm now?
19 replies 354 views
alexwalletSenior Member
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#2Feb 9, 2021, 12:12 AM
I think the DEX futures market is the answer.
Institutions may have contributed only partially to the "savior" of the panic, but unfortunately, their buying claims have recently had a diminishing effect on retail psychology. In terms of amount of ownership, they're in "whales" category. In my opinion, the market psychology is currently split between two sides: whales still dominate the macro narrative, but DEX futures visibility is starting to become a short-term retail psychological trigger.
vault_nodeFull Member
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#3Feb 9, 2021, 02:41 AM
Whales selling is nothing wrong, they need cash at hand too. bitcoin is currently facing an attrition from the consolidated price of 112k USD which is nothing bad. Yeah maybe institutions are not backing up, but this price is too high for them to get a decent amount of bitcoin in their pocket too. Realistically, how many retail investors do you think can afford to buy 1BTC at this price? They will buy one hundredth or one thousandth of it, not more. So retail is also not going to help at this level.
This leads to me to wonder, are we going to see a cap on the max price of bitcoin at some time in the future, beyond which buying bitcoin become literally impossible?
Last couple of weeks was major selling for most equities and crypto. There was billions of stock sold by hedge funds and retail investors, but if you look at the stock market it still keeps making new highs. And we had these massive bitcoin sells in the past and we still kept going higher and higher.
I dont think its a good indicator if its the top, it might be more of an indicator that we might dip, however by the time you hear the news its already too late and the move has happened. These people could of sold near the ATH and right now, are you going to be selling at $110K and end up selling or shorting the bottom like in the past?
boss_wizardSenior Member
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#5Feb 9, 2021, 07:49 AM
I think at this point whales dumping isn't a big deal. Beside from institutional buyers, there are also the growing retailers market.
The institution may only here to delay the drop but I don't think they're foolish enough to just dump it in one go.
I'm sure these institution players is here to hedge against inflation and that means long term holding, not just flipping money.
basedchainFull Member
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#6Feb 9, 2021, 10:48 AM
The good news is were not in the old days anymore, the markets way more stable now, even if its still volatile by nature. when theres a dump, its not like before where youd see 20% or more wiped out in a snap. that was normal back then.
Now its more of a transition market. the big players are already in, and their intentions are mostly long term. so anyone dumping now trying to manipulate the price will probably regret it as it wont cause much panic anymore. what they dont realize is theyre wasting opportunity, because if they just held longer, the profits would be much bigger.
It's 8th biggest asset for now and liquidity is abundant. Trading volume is reaching is so big that it can handle such dump easily.
The only whales worth noting are at the microstategy level and above. The smaller whale won't influence the market that much, even MSTR buying news doesn't really move market.
Bitcoin is too big to be bothered with that kind of whale sell off unless it's selling billions in one go but smart whales never induce panic so they can maximize their TP.
silentchainHero Member
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#8Feb 9, 2021, 06:19 PM
With what I know, bitcoin is a resourceful asset just like every other means like gold, tech and stocks which basically is expected to yield profits. So I see needs of these whalers to sell as a cause of realizing their investment goals probably after hodling in the long time while I also believe there could be those who bought aggressively bought but as investment sentiments may differ, not all whalers may be bargaining to hodl in the long time. Some for satisfied with how much they have realized and not literally because of panic unless those pulling their funds off from the market maybe one of the inexperience investors that has not possibly built their confidence pertaining the markets volatilities before invested those huge amounts of $. Definitely that follows as a result of selling pressures.
Nah, I won't buy this, everything that's happening on centralized exchanges can also happen on dex, there is nothing special about them either, it is like saying Sam
Bankman should go and open a dex, he will do the same thing again, look at CZ, that bastard manipulated the market selling loads of Ethereum through winter mute, he is saying he no more control Binance exchange and now he is going fully dex (Aster) this doesn't mean shit, we are given names but what these developers will do they will still do. This is why I keep saying that no one can ever be like Satoshi Nakamoto, the sacrifice that the man made also restricted him from his own investion, he knew that to err is human.
Imagine youre a whale holding 100,000 bitcoins, dealing with billions of dollars, and you decide to sell some Bitcoin. If you just hold fiat, inflation will eat away at your wealth, and theres always the risk of hyperinflation that could wipe you out overnight. The only options are to reinvest in Bitcoin, or in other hard assets like gold, the S&P 500, or real estate. But all of these have their downsides when analyzed. In the end, Bitcoin is arguably the best way to preserve capital. So you dont need to worry too much about short-term market speculation thats what speculators are constantly doing, selling high and buying the dip.
We saw how the stock market printed over $1.2 trillion during week while the crypto market lost a lot. Thing are changing, at the early beginning of the year it was quite different. All market bled because of trump's tariffs.
Whales are no longer the talk of the town,even if they still have a good percentage of the market volume, with institutions flowing into the market, there most likely will be md of balance. While the whales are thinking of selling off their long term hold, the institutions are buying to ride along.
viper_blockSenior Member
Posts: 205 · Reputation: 1216
#12Feb 12, 2021, 02:22 AM
The current dumps that happen should not be worried because the market will be back to normal. But the dumps provide us more chances to buy low that we may not see happen in the future. If you don't use that moment for your own benefit, you will regret and may not take the opportunity to make a big profit. The whale sales are normal like the other traders because I consider that they also want to take profit after holding for years. It's good if institutions take their chances to buy back at the dump moment because they can see the opportunity that will benefit them in the future.
dave_satoshiSenior Member
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#13Feb 12, 2021, 04:40 AM
There are few cases recently, where Satoshi era whales have sold or moved there Bitcoins and they have done the right move. These Whales have bought Bitcoin when it was under 100$ and selling now when Bitcoin is trading over 100,000$. Those who are new to Bitcoin must learn from such cases that how profitable it is to HODL bitcoin for long duration. You are right in saying that such dumps must not be seen as a worrying sign but should be taken as an opportunity to add more Bitcoins to our portfolio.
When whales and market makers want to hype the crowd, attract new investors, speculators, gamblers into the market, they will paint very bright future ahead in this market, and say something like "This month, this dip is your very last chance of purchase before Bitcoin takes off to the Moon".
Oppositely, when they want to dump the market, they will say something oppositely and of course not only by sayings, they can make buys, sells in order to trigger the market action and make their sayings more true. Additionally, with big funds, they can set up buy walls and sell walls for controlling price within their favorite price range but at the right time, they can remove those orders and trigger market break out or wash out.
With experienced investors, they will see dips as chances of purchasing discount and cheaper bitcoin, and they have kind of long term investment mindset so that they don't bet with their money, don't use leverage, just buy with Spot and withdraw it to their non custodial wallets. They don't mind if after a purchase, they get some loss from that entry as said it is one of their accumulation for long term investment portfolio.
hodler2011Full Member
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#15Feb 13, 2021, 12:18 AM
A few years ago, a whale selling or intending to sell used to crash the market and bring about great pessimism
But that has changed, at least from what I can see in the market
Obviously, there is more money in BTC this time around, allowing the market to better absorb large sales
We have institutions buying practically every week, with Saylor or some company announcing cash in BTC and buying a few million
That sale of 80k BTC by a whale that had been dormant for 14 years, I thought it could cause a bigger movement in the market, but that's not what happened...
This one https://cointelegraph.com/news/satoshi-9-6b-bitcoin-whale-galaxy-1-1b-exchanges
This is actually a good testament that the market is already more stable now. Back then, even without a sell-off, just a rumor that someone would dump a huge amount of Bitcoin was enough to trigger temporary panic. Pump and dump scenarios used to feel normal in the past, but now it doesnt seem to happen as much - the market has shifted.
Could this be because of regulation and institutional investors stepping in? Would you agree?
If you are listening to the news seeing the way whales are seeing their assets, you will not want to invest in Bitcoin because that will change your mindset automatically making you to feel depress about how everything is playing out.
Do not forget that the bear is certain and their is nothing we can do about it. If the price of Bitcoin goes down more, we should be excited to buy more Bitcoin than complaining of the manipulation we can not stop. If you are holding for the purpose of long term basis, your mind will be free and you are not going to be bothered. I am standing watching how the movement will be. No panicking!
hodler2011Full Member
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#18Feb 14, 2021, 10:02 PM
I believe that regulation can have an effect on all of this, mainly because before there was that fear that BTC could be banned, and today that is no longer a reality
Institutional investments have brought a lot of money to Bitcoin's market cap. I don't know if this was good or bad for BTC, but obviously with more market cap it becomes increasingly difficult to bring prices down as it was before, like a crash
That's my opinion
but if you have anything to add, feel free. Do you agree?
Whale sell-offs will always influence the market. The BTC price has dropped a little bit since the lack week. Price dumps won't disappear just because institutional investors are willing to "buy the dip". I'm not sure about which institutional investors are you talking about.
There's more liquidity on the BTC market right now, in comparison to previous years, so the whale sell-offs won't cause a huge shock across the markets. Maybe there will be a small bear market during October and November. The effect of the FED interest rate cuts have already been consumed, but the situation with the US economy isn't perfect.
If it were a few years ago, many people might have been tempted to sell their Bitcoin when they saw a whale selling, but today, people are more informed and less easily triggered by seeing a whale selling large amounts of Bitcoin. Instead, some see it as an opportunity to accumulate more at a lower price. Therefore, selling pressure from whales doesn't always have a significant impact on price declines today, as investors are now better prepared and able to absorb declines with their experience and understanding of Bitcoin's value.