Key Highlights

• Bitcoin whale activity has slowed as the U.S. election approaches.
• Net inflows from large holders have decreased significantly over the past week.
• Speculation around regulatory changes and political impacts on cryptocurrency is rising.
• The crypto market shows signs of consolidation around the $67,000 mark.

Whale Activity Declines as Election Day Looms

In a trend reflecting caution among major Bitcoin holders, also known as “whales,” data shows a significant decline in whale activity leading up to the U.S. election.

According to blockchain analytics firm IntoTheBlock, the net inflow from large holders dropped from 38,800 BTC on October 20 to just 258 BTC on October 26. This decline highlights the uncertainty pervading the Bitcoin market as the November 5 election date approaches.

On October 23, Bitcoin briefly dipped below $66,000 following net outflows by whales on October 21 and 22, reinforcing that these large investors are exercising heightened caution as political and economic implications remain uncertain.

“Investors are preparing for what might be an election that heavily impacts regulatory direction,” one analyst noted.

This sentiment suggests that some whales may be stepping back from aggressive market moves until the election’s outcome clarifies the landscape.

Bitcoin Market Consolidates Amid Cooling Liquidations

Despite minor selloffs, Bitcoin has mostly held steady around $67,000 over the past week. Liquidations across the market have notably cooled, with Coinglass reporting an 85% drop over the past 24 hours.

The total liquidation value hovered around $59 million, split almost evenly between long and short positions. These trends in reduced Bitcoin whale activity and lower liquidations indicate a market in consolidation, waiting for more definitive election outcomes.

With the price steady, U.S.-based Bitcoin ETFs continue to record strong inflows. Notably, BlackRock’s iShares Bitcoin Trust ETF saw inflows of $292 million recently, driving the monthly total for BTC ETFs to over $3 billion.

As some analysts suggest, these inflows might be a sign that institutional investors still see potential in the market, regardless of short-term volatility.

How the U.S. Election Impacts Whale Sentiment and Crypto Regulations

The 2024 election comes as part of a “super election year,” with other significant elections in India, Mexico, and Indonesia that collectively add to global economic uncertainty.

In the U.S., the presidential race between Kamala Harris and Donald Trump introduces further potential for regulatory changes that impact cryptocurrency.

Harris has made promises to cut “unnecessary regulatory red tape” for crypto, while Trump has emphasized his support for the industry by proposing a “Bitcoin and Crypto Advisory Council.”

Amid such potential shifts, Bitcoin whale activity appears to be taking a strategic pause. According to one crypto analyst, whales are “likely positioning themselves to react quickly to any major policy changes, particularly around crypto regulations.”

This trend has raised speculation that any election outcome that hints at regulatory tightening may lead whales to relocate holdings to jurisdictions with more favorable crypto policies or to offload holdings temporarily in anticipation of market turbulence.

While large investors often seek to avoid regulatory friction, others have noted that some crypto whales may see post-election volatility as a chance to buy into assets perceived as a hedge against fiat currency risks tied to fiscal policy and inflation.

For crypto whales, Bitcoin remains a uniquely valuable asset, offering a hedge against potential economic fallout from election-related policy changes.

Final Note

As the U.S. election approaches, Bitcoin whale activity is slowing, hinting at a cautious wait-and-see approach among major holders.

While whale outflows have created slight pullbacks in Bitcoin’s price, steady ETF inflows suggest that investor interest remains strong.

The broader market sentiment reflects cautious optimism, with investors awaiting clarity on the regulatory and economic landscape post-election.