Data Highlights Massive BTC Accumulation by Whales as ‘Extreme Fear’ Grips Bitcoin Price ⋆ ZyCrypto
In recent years, Bitcoin’s price has been on a roller coaster ride, and so have the sentiments of its holders. After falling more than 50% from an all-time high of nearly $69,000 in November 2021, Bitcoin bounced back to $45,000 briefly, but then went through another downward spiral to hit a three-month low of $18.9,000 June 18, 2022 Since then, the price has struggled to break out of the $20k-$30k range, and market sentiment has been mixed.
However, one group of Bitcoin holders seems more optimistic than others, as they have resumed accumulating crypto assets en masse despite the recent market turbulence. These whale addresses hold 100-1k BTC, often seen as influential players in the Bitcoin ecosystem due to their large holdings and potential impact on price.
Whale Agiotage may hint at Bitcoin’s positive outlook
According to the latest data from chain analytics firm Santiment, whale addresses with 100-1k BTC have added 20,007 BTC to their holdings in the past two days following a month-long selling period. This suggests that these whales are confident in Bitcoin’s long-term prospects and see the current decline as a buying opportunity.
Not all whale addresses are created equal, and some may have different transaction strategies or motives. For example, there are also whale addresses with more than 1k BTC, who have been selling more than buying lately, possibly to take profits or rebalance their portfolios. Also, some of the whales may be institutional investors or high net worth individuals with access to over-the-counter markets or derivatives that are not reflected in the chain data.
Nevertheless, the trend of whale accumulation in the lower range of BTC holdings may indicate that some retail investors or small-scale traders are also following their cue and buying dips. This may provide some support to the price and prevent it from falling further, as it did in the previous bear market in 2018-2019 when whale sales worsened sales.
Bitcoin Price: What Happened?
Speaking of price, Bitcoin has been oscillating between the $30.5k resistance and the $28.7k support level in recent days, with neither side gaining any decisive advantage yet.
The short-term’s lack of a clear direction may reflect the uncertainty and indecision among traders and investors, who are waiting for more clarity on the regulatory and macroeconomic fronts. The recent crackdown on crypto mining and trading in China and the potential tapering of interest rates by the US Federal Reserve could have a significant impact on Bitcoin’s price and perception as a safe haven or a speculative bubble.
The whale accumulation of Bitcoin and the price consolidation around the $20k-$30k range are contrasting but related signals that reflect the ongoing tug of war in the cryptocurrency market. It remains to be seen whether the whales are correct in their bullish outlook and whether the price can break out of the current range. What is certain is that the crypto world is never short of drama and surprises.
