Crypto whales have begun accumulating bitcoin within the last week, which could signal a sell-off following next week’s block reward reduction.
According to a report by crypto analytics platform Santiment, bitcoin whales have been buying BTC in increasing amounts over the past week, in a potential bid to move the price higher ahead of May 12’s halving.
The researchers claim address holders with 1,000 to 10,000 BTC reversed their position and began accumulating bitcoin this week, with a significant number of previously dormant addresses also moving BTC. The researchers speculate the sudden movement may be in an anticipation of a sell-off following the block reward halving, with investors attempting to catch the rally at the top.
Dino Ibisbegovic, Santiment’s head of content, explained the changing sentiment towards bitcoin’s halving.
The report reads,
Our social media data suggests an increasingly bearish outlook on the pre-halvening price action…The Bitcoin-related sentiment was sky-high on most social media channels in last week’s run up to $9k. Since then, however, we’ve seen the mood cooling down.
Ibisbegovic continued, saying sentiment towards bitcoin reached a bullish 3-month high on Telegram last week but has since “dramatically” declined following bitcoin’s move above $9,000.
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