In a stunning display of market might, Bitcoin whales have emerged as the undisputed kings of the recent crypto market downturn. According to on-chain data, these high-net-worth investors capitalized on the sharp price drop on August 5 and 6 to accumulate massive amounts of Bitcoin.
Analytics platform Santiment revealed a surge in transactions involving wallets holding between 10 and 1,000 BTC. A staggering 28,319 transactions worth over $100,000, and 5,738 transactions exceeding $1 million, were recorded during the two-day market rout.
Bitcoin’s price plummeted nearly 18% on August 5, briefly dipping below the $50,000 mark. While the cryptocurrency has since recovered some ground, trading around $57,000, the buying spree by whales has been a key factor in the price stabilization.
This aggressive accumulation aligns with recent trends. Data shows that Bitcoin whales have been steadily moving their holdings off exchanges, a classic indicator of bullish sentiment. In fact, the rate at which these whales have been withdrawing their Bitcoin from trading platforms hit a nine-year high just days before the market crash.
Also Read: Zombie Company Turned Bitcoin Bull – Metaplanet Raises $6.8M
However, the same cannot be said for institutional investors. Despite the attractive prices, Bitcoin exchange-traded funds (ETFs) experienced significant outflows during the downturn. This lack of buying pressure from institutional investors has raised concerns about the market’s overall direction.
While whale accumulation is often seen as a bullish signal, the broader market sentiment remains cautious. The cryptocurrency market is highly volatile, and future price movements will depend on a variety of factors, including regulatory developments, macroeconomic conditions, and investor confidence.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
