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Bitcoin (BTC) whales appear to be releasing some of their holdings ahead of the 2024 US presidential election.
2% Fall in BTC Held by Whale Addresses
In a posted on X, crypto analyst Ali Martinez shared that Bitcoin whales – wallet addresses that hold a significant amount of BTC – are “dialing up exposure” ahead of what could be a highly contested US presidential election.
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According to the analyst, there was a 2% decrease in the number of wallet addresses holding 1,000 or more BTC.
Notably, since May, the number of Bitcoin whales was at its highest in mid-October when Republican president Donald Trump was the overwhelming favorite to emerge victorious.
At the time of writing, the decentralized prediction markets platform is Polymarket he gives Trump has a 62.7% chance of winning, while Democratic candidate Kamala Harris has a 37.4% chance of becoming the next US president.
Bitcoin whales selling off some of their BTC holdings as Americans prepare to vote could represent a cautious, possible way to mitigate potential price volatility tied to the election.
Bitcoin Whales Awaiting Price Volatility?
The selloff may suggest that Bitcoin whales foresee a stronger regulatory environment for the digital asset after the election. These concerns may be unfounded, as the Biden administration has faced accusations of adopting a hostile stance on the digital goods industry.
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On the contrary, Trump repeatedly promised to make the US the “crypto capital of the world” during his election campaign.
In addition to the whale selloff, long-term BTC holders seem to be dumping their holdings. According to the latter analysismore than 177,000 BTC were sold by long-term holders in the last seven days.
Another scenario to consider is that any decline in BTC assets without a corresponding drop in price may indicate that retail investors are stepping up to buy the digital asset.
Notably, the demand for Bitcoin among retail investors has been steadily increasing since September 2024. According to the latest. reportretail demand for BTC has increased by 13% in the past month, indicating a shift in the market’s risk appetite from risk-on to risk-on.
Martinez also brought the attention of BTC TD sequence on the 12 hour chart and how the buy signal is flashing.
For the uninitiated, the TD sequence is a technical analysis indicator used to identify potential price breakout points and trend reversals in financial markets.
That said, Trump’s victory may not be a silver bullet for Bitcoin’s falling price, as it is which is critical for the top digital asset to hold the $68,000 support level to avoid a slide to $63,000. At press time, BTC is trading at $69,595, up 1.3% in the last 24 hours.
Featured image from Unsplash, Charts from X and Tradingview.com
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