Silke Mayr With just eight days before the U.S. presidential election, Bitcoin whale activity has slowed significantly. Net inflows dropped from around 38,800 BTC on October 20 to only 258 BTC by October 26. This shift aligns with Bitcoin’s price stabilizing near $67,000.
Data from IntoTheBlock reveals large holders saw net outflows of 4,750 BTC on October 21 and 533 BTC on October 22. These outflows briefly pushed Bitcoin’s price below $66,000 on October 23.
Liquidations Drop Sharply
Cryptocurrency liquidations have decreased by 85% in the past day, totaling about $59 million, according to Coinglass. Long liquidations amounted to $28.7 million, while short liquidations reached $30.5 million. Over the last 24 hours, Bitcoin’s share of total liquidations was $5.6 million, with $2.2 million from longs and $3.4 million from shorts.
The drop in liquidations, trading volume, and whale activity signals growing market uncertainty. Bitcoin’s market capitalization is $1.33 trillion, while daily trading volume has fallen 63% to $15.5 billion.
ETFs Continue to Draw Investor Interest
Despite market fluctuations, spot Bitcoin exchange-traded funds (ETFs) in the U.S. continue to attract substantial investment. Reports show over $3 billion in net inflows this month alone. On Friday, spot BTC ETFs recorded a net inflow of $402 million, led by BlackRock’s iShares Bitcoin Trust ETF, which accounted for $292 million.
Total net inflows into these ETFs have surpassed $22 billion, despite Grayscale’s $20 billion in outflows.
Whales and the 2024 Election
The 2024 “super election year” has drawn heightened attention to Bitcoin whale activity. Elections in key nations like the U.S., India, Mexico, Indonesia, and Taiwan have triggered market volatility. Large holders are closely watching political developments for potential impact on Bitcoin’s value.
Some whales view Bitcoin as a hedge against risks tied to fiat currencies influenced by election outcomes, fiscal policies, and political uncertainty. They may adjust their positions to prepare for expected market swings, especially in politically sensitive regions like the U.S.
Potential Regulatory Shifts
The U.S. presidential election between Vice President Kamala Harris and former President Donald Trump could bring significant regulatory changes for cryptocurrencies. Stricter regulations may prompt whales to shift their Bitcoin to friendlier jurisdictions or sell holdings to avoid potential losses.
Harris has pledged to reduce “needless bureaucracy and unnecessary regulatory red tape” for cryptocurrencies if elected. Trump’s campaign has sought support from crypto billionaires and proposed a “Bitcoin and Crypto Advisory Council.”
Some whales may take a contrarian approach, selling Bitcoin to lock in profits before anticipated volatility. This could fuel waves of FOMO (fear of missing out) among smaller investors tracking whale moves.
Conclusion
Bitcoin whales are navigating a politically charged landscape with heightened caution. Their actions reflect the broader uncertainty tied to the U.S. election’s potential impact on global financial markets and regulatory shifts. As large holders adjust their positions, they continue to influence market trends and investor sentiment.