Large-holder net inflows plunge from 38,800 to 258

With just eight days until the US presidential election, movement among Bitcoin whales has decreased significantly.

The price of the asset has consolidated around $67,000.

According to data provided by IntoTheBlock, large Bitcoin (BTC) holder net inflows dropped from approximately 38,800 BTC on October 20 to 258 BTC on October 26. This may indicate that whales are nervous about US Election Day on November 1. 5th, approaching.

BTC whale network flow – October 27 | Source: IntoTheBlock

Whales saw a net outflow of 4,750 BTC and 533 BTC on October 21 and 22, respectively. As a result, the sell-off pushed the Bitcoin price below the $66,000 level on October 23.

Purges are cooling down

Moreover, according to Coinglass, crypto liquidations have dropped by 85% in the past day, with the total amount hovering around $59 million. Due to the market-wide waiting period, the spread between the $28.7 million long positions and the $30.5 million short positions is very close.

Bitcoin saw $5.6 million in liquidations; $2.2 million long and $3.4 million short position.

Bitcoin consolidated near $67,000 last week with a total market cap of $1.33 trillion. Daily transaction volume has decreased by 63% in the last 24 hours and is now at $15.5 billion.

BTC price – October 27 | Source: crypto.news

The decline in Bitcoin liquidations, transaction volume, and whale activity indicates uncertainty among investors.

ETFs remain strong

It is worth noting that the market still has not entered the panic zone. As a result, US-based spot BTC exchange traded funds continue their inflows.

According to a Crypto.news report, these investment products recorded net inflows of over $3 billion this month alone. On Friday, spot BTC ETFs saw inflows of $402 million, with a net inflow of $292 million, led by BlackRock’s iShares Bitcoin Trust ETF.

Despite Grayscale’s net outflow of $20 billion, the total net inflow of these ETFs exceeded $22 billion.

Bitcoin whales and 2024 elections

In the midst of a global “super election year,” Bitcoin whale activity in 2024 has taken on greater significance as major holders monitor and react to global political developments.

Elections in countries such as the US, India, Mexico, Indonesia and Taiwan have increased market uncertainty, resulting in significant movements in cryptocurrency markets, especially whales.

Elections in more than one major economy are causing increased market volatility. As a decentralized asset, Bitcoin is seen by some whales as a hedge against fiat currency risks tied to election outcomes, financial policies and political instability.

Some whales may try to take advantage of the expected post-election market turmoil. In countries with contentious elections, such as the United States, whales could position themselves for a potential run into cryptoassets, especially if there are fears of currency devaluation or restrictive capital controls.

Trump vs Harris

In the US, the upcoming presidential election between Vice President Kamala Harris and Former President Donald Trump could lead to new or changed regulatory stances regarding crypto.

Any sign of regulatory tightening could lead whales to shift their Bitcoin holdings to more favorable areas or sell some of their holdings in anticipation of a market downturn.

Harris promised to eliminate “unnecessary bureaucracy and unnecessary regulatory red tape” regarding cryptocurrencies if elected. Meanwhile, Trump is flirting with crypto billionaires, making money from non-fungible tokens, touting plans for a “Bitcoin and Crypto Advisory Council,” and launching his own token.

Whale Sell-Offs and FOMO: As with any major political event, some whales may take a contrarian approach by dumping Bitcoin to secure gains ahead of potential election-induced volatility. This could create waves of FOMO (fear of missing out) buying from small investors following whale wallets.

Overall, given the overloaded election cycle and its impact on global financial markets, Bitcoin whales in 2024 will likely act with more caution and strategic foresight.