Once again, Bitcoin [BTC] has failed to sustain an upward momentum and has started to consolidate, hovering between $64k and $65k.
At press time, the king coin was trading around $65015 after rising slightly by 0.45% on the daily charts, adding to its 3% weekly gains.
Whale dumps 7513 BTC worth $486 million
Even as the market slows down, Bitcoin continues to face increased sell-side pressure from large entities. Whales and some treasury companies continue to sell.
For instance, a whale has been on an aggressive selling spree. This whale sold another 1,019 BTC worth $66.4 million, according to Lookonchain.
Over the past three weeks, this whale has sold a total of 7,513 BTC worth $486.9 million. The continued selling activity indicates intentions to potentially exit the market fully.
Often, a sustained period of whale selling has weakened the market. Exchange activity confirms this selling.
Bitcoin’s Exchange Netflow has remained positive for four consecutive days – this period coincides with the whale’s continued selling activity. Often, the market reacts negatively when exchange supply increases, but BTC is holding strongly, suggesting pressure is being absorbed from elsewhere.
Empery Digital reduces Bitcoin exposure.e
In addition to the above whale, some Bitcoin treasury companies are also selling. One such firm is Empery Digital.
The treasury has been on a selling spree, reducing its total holdings by approximately 76%. The entity has sold 1,635 BTC worth $102 million since July, reducing holdings to 1,279 BTC.
Of the remaining holdings, 954 BTC was pledged as collateral against $35 million in debt. As a result, the unrestricted holdings fell to 325 BTC.
The company faces a potential $62 million commitment related to a data center property purchase, meaning they are likely to sell or commit the remaining Bitcoin.
Empery Digital is forced to sell because its bet on BTC has so far turned sour. Moreover, the EMPD stock has been on a downward spiral, falling 37% YTD and over 72% over the past year.
With the stock recording poor performance and BTC making losses, the firm is forced to liquidate its assets to remain operational.
What’s next for BTC?
Bitcoin has remained resilient, with demand mostly arising from the Spot ETFs. For now, the momentum is gradually strengthening but has yet to turn bullish.
A look at the ADX Trend indicator, both positive and negative, and the ADX indexes are all negative, with the positive index above it.
This shows that improving market conditions, but sellers are still commanding the market direction. Therefore, if selling pressure from whales and treasuries cools down, Bitcoin could have room for an upside move.
Until then, BTC is likely to see the continuation of the current trend, where a rejection can be followed by sideways movement.
Final Summary
- A Bitcoin whale sold another 1,019 BTC worth $66.4 million, raising the total sold to 7,513 BTC worth $486.9 million.
- Empery Digital has sold 1,635 BTC worth $102 million, with its unrestricted holdings falling to 325 BTC, which are also likely to be committed.
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