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Bitcoin (BTC) whales appear to be offloading some of their holdings ahead of the closely contested 2024 US presidential election.
2% Fall In BTC Held By Whale Addresses
In a post on X, crypto analyst Ali Martinez shared that Bitcoin whales – wallet addresses holding a significant amount of BTC – are “dialing back exposure” ahead of what is likely to be a very closely contested US presidential election.
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According to the analyst, there has been 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 during mid-October when Republican presidential candidate Donald Trump was the overwhelming favorite to emerge victorious.
At the time of writing, decentralized prediction markets platform Polymarket gives Trump 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 some of their BTC holdings as Americans prepare to vote could indicate a cautious approach, possibly to mitigate potential price volatility tied to the elections.
Bitcoin Whales Expecting Price Volatility?
The selloff might suggest that Bitcoin whales foresee a stricter regulatory environment for digital assets following the elections. This concern may not be unfounded, as the Biden administration has faced accusations of adopting a hostile stance toward the digital assets industry.
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On the contrary, Trump has 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 appear to be disposing of their holdings. According to recent analysis, more than 177,000 BTC were sold by long-term holders in the last seven days.
Another scenario worth considering is that any further decline in whale addresses’ BTC holdings without a corresponding drop in price could indicate that retail investors are stepping up to buy the digital asset.
Notably, demand for Bitcoin among retail investors has been on a steady uptrend since September 2024. According to a recent report, retail demand for BTC rose 13% in the past month, reflecting a shift in the market’s risk appetite from risk-off to risk-on.
Martinez also brought attention to BTC’s TD sequential on the 12-hour chart and how it is flashing a buy signal.
For the uninitiated, TD sequential is a technical analysis indicator used to identify potential price exhaustion points and trend reversals in financial markets.
That said, a Trump victory might not be the silver bullet for Bitcoin’s tumbling price, as it is critical for the top digital asset to hold the $68,000 support level to avoid slipping to $63,000. At press time, BTC trades at $69,595, up 1.3% in the past 24 hours.
Featured image from Unsplash, Charts from X and Tradingview.com
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