Bitcoin Price Drop Ignite Huge ‘Buy The Dip’ Moment For Whales As BTC Accumulation Increases ⋆ ZyCrypto
Despite Bitcoin’s recent crash to sub-$20,000 and the subsequent failure of crypto-linked lender Silicon Valley Bank pegging the markets, big BTC investors seem unwavering in their accumulation.
On Thursday, Bitcoin witnessed its biggest red day since last November before falling as low as $19,600 on Friday. Over the past seven days, the leading cryptocurrency by market cap has lost over 8% over Ether’s loss of 6.16% over the same period at press time.
Nonetheless, the recent plunge has created a “buy the dip” moment for some big investors, who, according to onchain data, have been scooping up BTC at record levels. In a March 11 post, on-chain analytics firm Santiment highlighted this development, noting that addresses holding 10BTC to 10,000 BTC in the past week bought 40,557 BTC worth around $821.5M.
“Bitcoin sharks and whales don’t seem to be to blame for the crypto week. In fact, addresses holding 10 to 10k $BTC have collectively accumulated $821.5 million back during this mid-sized crash.” wrote the company.
This behavior reflects a different picture from what has been seen, especially for smaller whales that have distributed their holdings at favorable times. However, whales with over 10,000 bitcoins have remained fairly stable, probably because their size limits them from quickly adapting to changing market trends. Data shows that this group has increased its holdings by approximately 7% since the BTC peak in November 2021.
The actions of the whale in the crypto market can provide valuable insight into where prices are headed. Whales are notorious for buying when they think the market has dipped and selling at premium prices. Their behavior can often lead to peaks, so keeping an eye on their behavior can help predict market direction.
Elsewhere, crypto data analysis firm IntoTheBlock noted that cumulatively, BTC buyers appeared to have a sweet spot just below $20k, with a whopping 474k BTC ($9.5B) bought for $19k.
“This concentrated buy zone indicates that buyers historically step up when prices hover near the $20,000 psychological barrier. Will we see a repeat of this pattern?” the firm said in a March 10 tweet.
In addition, the firm noted that addresses with between 0.1 and 1 BTC have been the fastest growing segment in the past month, while those between 0.0001 and 100 BTC account for over 40% of BTC supply.
At press time, Bitcoin was trading at $21,503, up 4.26% in the past 24 hours, according to CoinMarketCap data.
