Bitcoin Whales Double Down on Giant BTC Buys Despite Macro Headwinds ⋆ ZyCrypto
   
Bitcoin, the largest cryptocurrency by market capitalization, plunged further on Friday as hawkish comments from Fed Chairman Jeremy Powell on Wednesday continued to weigh on investors.
Since hitting an all-time high last November, Bitcoin has lost over 75% of its value thanks to a myriad of factors. Attempts by price to recover were thwarted earlier last month by the unexpected debacle of crypto exchange FTX, sending prices below $18,300 psychological support, which has become increasingly difficult for bulls to breach.
According to data from IntoTheBlock, only 36% of BTC holders are making a profit at current prices, 14% are at breakeven and 51% are in the red. In particular, a majority of those with profits are investors who have held coins for more than a year. Furthermore, a majority of investors continue to have a bearish view on Bitcoin, which is one of the most widespread signals of an impending trend change.
Investors are pouring in more BTC
Despite the continued fall in crypto prices, the number of Bitcoin investors who have piled up BTC has recently increased, based on data from Glassnode.
“Bitcoin addresses with between 100 and 10,000 BTC have bought $726m BTC in the last 9 days,” Glassnode wrote on Thursday, adding that a total of 40,747 more Bitcoins (worth $726 million) had entered the main whale wallets during this period. It is important to note that this category only represents 0.0364% of all BTC addresses. Despite being small, this group usually makes decisions that lead to future price movements.
   
Stablecoins have also painted an encouraging picture. “Stablecoin assets like USDT, BUSD and DAI are also being bought quickly. This is a recipe for good things” added the company.
The chart above illustrates the percentage of supply held by key price moving addresses for BTC, USDT, USDC, BUSD and DAI and can be used to reveal the future of crypto prices.
According to the firm, “when these lines mainly go down, it is not a good sign” because it suggests that wealthy players and institutional investors are leaving the markets. The chart thus shows increased interest from more prominent players to buy the aforementioned assets after reducing their holdings for approximately 14 months in a row. While we have yet to see a price reversal, with whales finally rallying rather than dumping, Bitcoin’s ebbing tide may be coming.
At press time, the largest cryptocurrency by market capitalization was trading at $16,829 after a 3.84% decline in the past 24 hours, according to data from CoinMarketCap. Earlier yesterday, the price tried to recover, rising as much as $17,486 after returning weekly support at $17,250 before turning worse.
