Movement among bitcoin whales, just eight days before the US presidential election, has slowed significantly.
The price of the asset has consolidated around $67,000.
According to data provided by IntoTheBlock, net inflows from large bitcoin (btc) holders plummeted from around 38,800 btc on October 20 to 258 btc on October 26. 5., approaches.
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Notably, whales experienced a net outflow of 4,750 btc and 533 btc on October 21 and 22, respectively. Consequently, the sell-off briefly sent the price of bitcoin below the $66,000 mark on October 23.
Liquidations cool down
Additionally, cryptocurrency settlements sunken by 85% during the last day and the total amount is around $59 million, according to Coinglass. Due to the market-wide cooling, the distance between the long positions, $28.7 million, and the short positions, $30.5 million, is very close.
bitcoin recorded liquidations of $5.6 million: $2.2 million in long positions and $3.4 million in short positions.
bitcoin has been consolidating near the $67,000 mark over the past week with a total market capitalization of $1.33 trillion. Its daily trading volume decreased by 63% in the last 24 hours, currently standing at $15.5 billion.
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Decreasing bitcoin liquidations, trading volume, and whale activity hint at uncertainty among investors.
ETFs remain strong
It is important to note that the market has not yet entered a panic zone. After all, US-based btc spot ETFs continue their inflows.
According to a report by crypto.news, these investment products recorded a net inflow of over $3 billion this month alone. On Friday, btc spot ETFs recorded a net inflow of $402 million, led by BlackRock's iShares bitcoin Trust ETF, with an inflow of $292 million.
The total net inflows of these ETFs surpassed the $22 billion mark despite net outflows of $20 billion from Grayscale.
bitcoin whales and 2024 elections
bitcoin whale activity in 2024, amid the global crisis “super election year”, has proven to be of greater importance as large holders monitor and react to global political developments.
Elections in countries such as the United States, India, Mexico, Indonesia, and Taiwan have amplified market uncertainty, which tends to drive significant moves in cryptocurrency markets, especially by whales.
With elections in multiple major economies, leading to increased market volatility. bitcoin, as a decentralized asset, is seen by some whales as a hedge against fiat currency risks tied to election results, tax policies, and political instability.
Some whales could try to cash in on the expected post-election market turbulence. In countries with contentious elections, such as the United States, whales could position themselves for a possible flight into crypto assets, especially if there is fear of a currency devaluation or restrictive capital controls.
Trump vs. Harris
In the US, the upcoming presidential election between Vice President Kamala Harris and former President Donald Trump could lead to new or modified regulatory stances on cryptocurrencies.
Any sign of regulatory tightening could lead whales to move their bitcoin holdings to more favorable jurisdictions or sell parts of their holdings in anticipation of market declines.
Harris promised to eliminate “unnecessary red tape and unnecessary regulatory red tape” regarding cryptocurrencies if elected. Meanwhile, Trump has been x.com/tyler/status/1803872859938549920″ target=”_blank”>courting crypto billionaires, cashing in on non-fungible tokens, touting plans for a “bitcoin and Cryptocurrency Advisory Council” and launching its own token.
Whale sell-off and FOMO: As with any major political event, some whales could take a contrarian approach, dumping bitcoin to lock in profits ahead of potential election-induced volatility. This can create waves of FOMO (fear of missing out) buying by smaller investors following whale portfolios.
Overall, bitcoin whales in 2024 are likely to operate with greater caution and strategic foresight, given the supercharged election cycle and its impact on global financial markets.
