Are Whales really the smart buyers we make up them to be? According to this bear market they have been not so smart while accumulating…

I‘d guess that about 90% of members on this sub are either shrimps (less than 1BTC) or crabs (1 to 10BTC) when it comes to Bitcoin holdings. And another observation is that many here “care“ a lot about how Whales (over 1k BTC) trade and when whales buy or sell. This is mostly due to the understanding that whales are older players in Crypto and can thus predict a bear market and bull market much better than us.

This is not really true. While there are some whales that have a quite good knowledge about the markets, they are the very minority. Especially during this bear market we could see that those rich Whales do not know anything more than us about the markets and have been wrong a couple of times.

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Whale Addresses from lookintobitcoin

This chart shows the amount of Whale addresses, an increase can be associated with prior Whales buying more (Whales usually spread their holdings over multiple addresses) or even new big players entering the markets. In the past this metric usually increased a lot during a bear market, showing the smart accumulation by whales while other people shit themselves.

This time it was different, Whales did start to accumulate but during the wrong time as most of us here did too. They were buying at $35k levels during early 2022 and now they have been selling or exiting the markets at even lower prices as the amount of Whales just keeps decreasing.

This could be the effect of institutions entering Crypto and not really knowing when to buy or sell but just throwing money but also the effect of Whales miss-timing the markets just as us all.