Highlights of Massive BTC Accumulation by Whales While ‘Extreme Fear’ Holds Bitcoin Price Hostage

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In the past few years, both the price of Bitcoin and the emotions of its holders have been volatile.

After falling by more than 50 percent from its all-time peak of nearly $69k in November 2021, Bitcoin momentarily rebounded to $45k before resuming its descent and reaching a three-month nadir of $18,9k on June 18, 2022. Since then, the price has struggled to break out of the $20,000 to $30,000 range, and market sentiment has been divided.

Despite recent market volatility, one group of Bitcoin holders appears more optimistic than others, as they have resumed mass accumulation of the crypto asset. Due to their sizable holdings and prospective impact on the price, these addresses are frequently regarded as influential participants in the Bitcoin ecosystem.

According to the most recent data from on-chain analytics firm Santiment, whale addresses holding between 100 and 1,000 BTC have added 20,007 BTC to their holdings over the past two days, following a month-long selling period. This indicates that these billionaires are optimistic about Bitcoin’s long-term prospects and view the current decline as an opportunity to purchase.

Some whale addresses may have distinct transaction strategies or motivations than others. For example, there are addresses with more than 1,000 BTC that have been selling more than purchasing in recent months, possibly to take profits or rebalance their portfolios. In addition, some whales may be institutional investors or wealthy individuals with access to off-chain markets or derivatives that are not reflected in the on-chain data.

Notwithstanding, the trend of whale accumulation in the lower range of BTC holdings may indicate that some retail investors or small-scale traders are following their lead and purchasing the decline.

Bitcoin’s price has oscillated between $30.5k resistance and $28.7k support for the past few days, with neither side obtaining a decisive advantage.

The lack of direction in the short term may reflect the uncertainty and indecision of traders and investors, who are awaiting greater regulatory and macroeconomic clarity. The recent restriction 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 asset or speculative speculation.

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