With only eight days until the U.S. presidential election, Bitcoin whale activity has drastically decreased. The price of the asset has stabilized at roughly $67,000.
The Bitcoin (BTC) large-holder net inflows fell from about 38,800 BTC on October 20 to 258 BTC on October 26, according to statistics from IntoTheBlock. This may be a sign that whales are anxious as November 5, the U.S. election day, draws near.
Notably, whales had a net outflow of 4,750 Bitcoin on October 21 and 533 Bitcoin on October 22. As a result, on October 23, the selloff momentarily dropped the price of Bitcoin below $66,000.
Cooling liquids
Additionally, according to Coinglass, the overall value of cryptocurrency liquidations has dropped by 85% in the last day, lingering around $59 million. The gap between longs ($28.7 million) and shorts ($30.5 million) is extremely narrow because of the market-wide cooling. 2.2 million longs and 3.4 million shorts totaled $5.6 million in Bitcoin liquidations.
Bitcoin’s market valuation is $1.33 trillion, but its daily trade volume has decreased by 63% to $15.5 billion in the past day. Investor hesitancy is suggested by the drop in Bitcoin liquidations, trading volume, and whale behavior.
ETFs continue to be robust
It’s crucial to remember that the market hasn’t yet descended into panic. After all, the spot Bitcoin exchange-traded funds based in the United States are still receiving inflows.
A report on crypto.news claims that this month alone saw a net influx of more than $3 billion into these financial products. BlackRock’s iShares Bitcoin Trust ETF topped the $402 million net inflow into spot BTC ETFs on Friday with $292 million.
Despite Grayscale’s $20 billion net outflows, the combined net inflow of these ETFs exceeded $22 billion.
2024 elections and bitcoin whales
In 2024, during the world’s “super election year,” bitcoin whale behavior has taken on greater relevance as major holdings keep an eye on and respond to world political events.
Market uncertainty has increased due to elections in the U.S., India, Mexico, Indonesia, and Taiwan. This tends to cause big movements in cryptocurrency markets, particularly by whales.
Market volatility has intensified as a result of elections in several major economies. Some whales view Bitcoin, as a decentralized asset, as a hedge against fiat currency risks associated with political instability, economic policies, and election results.
Some whales may attempt to profit from the anticipated market volatility following the election. Whales may position themselves for a possible flight to cryptocurrency assets in nations with controversial elections, like the United States, particularly if there is concern about currency devaluation or stringent capital controls.
Trump versus Harris
The upcoming US presidential election between Donald Trump and Kamala Harris could potentially lead to new or altered regulatory positions on cryptocurrency.
Whales may move their Bitcoin holdings to more advantageous countries or sell off a portion of their assets in anticipation of market downturns if they notice any indications of regulatory tightening.
If elected, Harris promised to eliminate “needless bureaucracy and unnecessary regulatory red tape” pertaining to cryptocurrencies. In the meantime, Trump has been pursuing cryptocurrency billionaires, making money off of non-fungible tokens, announcing plans to create a “Bitcoin and Crypto Advisory Council,” and introducing his own token.
Whale Sell-Offs and FOMO: Similar to every significant political event, some whales may adopt a contrarian stance and sell Bitcoin in order to protect gains before any turbulence brought on by the election. This may cause smaller investors who follow whale wallets to buy in waves due to FOMO (fear of missing out). Overall, considering the heightened election cycle and its effects on international financial markets, Bitcoin whales in 2024 are probably acting with more prudence and strategic acumen.
