Bitcoin (BTC) whales appear to be offloading some of their holdings ahead of the closely contested 2024 US presidential election.

2% Fall In BTC Held By Whale Addresses

In a post on X, crypto analyst Ali Martinez shared that Bitcoin whales – wallet addresses holding a significant amount of BTC – are “dialing back exposure” ahead of what is likely to be a very closely contested US presidential election.

According to the analyst, there has been a 2% decrease in the number of wallet addresses holding 1,000 or more BTC. 

Notably, since May, the number of Bitcoin whales was at its highest during mid-October when Republican presidential candidate Donald Trump was the overwhelming favorite to emerge victorious.

At the time of writing, decentralized prediction markets platform Polymarket gives Trump a 62.7% chance of winning, while Democratic candidate Kamala Harris has a 37.4% chance of becoming the next US president.

Bitcoin whales selling some of their BTC holdings as Americans prepare to vote could indicate a cautious approach, possibly to mitigate potential price volatility tied to the elections.

Bitcoin Whales Expecting Price Volatility?

The selloff might suggest that Bitcoin whales foresee a stricter regulatory environment for digital assets following the elections. This concern may not be unfounded, as the Biden administration has faced accusations of adopting a hostile stance toward the digital assets industry.

On the contrary, Trump has repeatedly promised to make the US the “crypto capital of the world” during his election campaign.  

In addition to the whale selloff, long-term BTC holders appear to be disposing of their holdings. According to recent analysis, more than 177,000 BTC were sold by long-term holders in the last seven days.

Another scenario worth considering is that any further decline in whale addresses’ BTC holdings without a corresponding drop in price could indicate that retail investors are stepping up to buy the digital asset.

Notably, demand for Bitcoin among retail investors has been on a steady uptrend since September 2024. According to a recent report, retail demand for BTC rose 13% in the past month, reflecting a shift in the market’s risk appetite from risk-off to risk-on.

Martinez also brought attention to BTC’s TD sequential on the 12-hour chart and how it is flashing a buy signal. 

For the uninitiated, TD sequential is a technical analysis indicator used to identify potential price exhaustion points and trend reversals in financial markets. 

That said, a Trump victory might not be the silver bullet for Bitcoin’s tumbling price, as it is critical for the top digital asset to hold the $68,000 support level to avoid slipping to $63,000. At press time, BTC trades at $69,595, up 1.3% in the past 24 hours.