Temporary Drop in Bitcoin Price: The Role of Small Investors

Recently, the drop in Bitcoin (BTC) prices has led to different interpretations among investors. However, the observed data reveals that this pullback occurred mainly due to the sales of small wallet holders rather than large investors. According to data shared by a CryptoQuant analyst, following Bitcoin’s price reaching $126,000 on October 7, profit-taking led to the price decline.

According to the data, approximately 7,700 BTC were sent to the Binance exchange on the same day. It was determined that 7,500 BTC of this amount came from short-term investors. This situation suggests that the decline was shaped more by short-term profit realizations rather than the actions of long-term investors. The selling pressure primarily involved small investor groups known as shrimps, crabs, and fish, which sold 603 BTC, 2,260 BTC, and 3,860 BTC respectively. On the other hand, only 768 BTC was observed flowing from wallets categorized as sharks.

In light of this data, the total silence of large investors may indicate that the decline could be temporary. The CryptoQuant analyst noted that sales occurring in a small-scale and controlled manner could have a positive impact on market dynamics. In the past, it has been observed that when large wallets refrained from participating in sales, prices returned to upward trends following short-term corrections.

If this trend continues, it is thought that Bitcoin may maintain its momentum and seek new peaks in the upcoming period. Critical points for investors to monitor include the influence of small investors on the market and the attitudes of large investors. In this context, the ongoing correction is considered short-term, and there is a potential for further growth in the future.