Did Whales cause the BTC correction?

The on-chain data service Glassnode categorizes investors with more than 1,000 Bitcoin (BTC) in their digital wallets as whales. Whale spotting is also worthwhile in the Bitcoin world. After all, the deep-sea dwellers are considered absolute pros when it comes to spotting trends. When Whales buy coins from exchanges, it usually means they are bullish - and vice versa.

In early March, transactions from Whale wallets to exchanges' accounts increased significantly - shortly thereafter, BTC dropped by several thousand US dollars.

This is how much BTC flows from Whale to exchange accounts per day. Source: Glassnode

Two wallets associated with Binance also stood out in this context. On two days each, 4,000 BTC were moved to hot wallets on the exchange. Both times the price plummeted as a result. It is possible that BTC millionaires had cashed in their coins as a precaution in anticipation of falling prices.

Whale's: correlation or causation?

To what extent the whales were actually the cause of the recent price movements or merely a trend correlation cannot be determined with certainty.

Still, the current Whale moves are a clear sign of the prevailing volatility in the market. Bitcoin fell significantly recently, but has since rebounded above 60000. At 8.4 percent, the No. 1 cryptocurrency recorded its sharpest decline since the FTX debacle.

Overall, whale activity is still quite low compared to current price levels. This is what analysis platform Kaiko says.