With Bitcoin Crashing, Data Shows Whales Are Only Buying The Dip

With Bitcoin crashing, the data shows that whales are only buying the dip and they have been quietly filling their bags so let’s read more in our latest BTC news.

As the crypto winter bites enlarge, the on-chain metrics suggest the confidence among BTC whales does not wane. The leading cryptocurrency is now trading under $20,000 which is down by 35% YTD and down by 71% from its ATH of $69,000 in 2021. during huge sell-offs like this one, many investors liquidate the positions but this doesn’t seem to be the case when it comes to those that hold up to 1000 BTC. The fresh data from IntoTheBlock shows that this continued to accumulate some cheaper coins despite the bearish prices. The analyst at Blockhain analytics company IntoTheBlock wrote:

“In the last multi-year long bear market Bitcoin whales took advantage to accumulate at a high pace, as pointed out by the red arrow in the chart.”

Whales (>1k $BTC) typically go through accumulation / distribution cycles, often aligned with #Bitcoin market structure.

These entities are also adding to their balance aggressively, acquiring 140k $BTC/month directly from exchanges

Whales now own 8.69M $BTC (45.6% Supply)

3/4 pic.twitter.com/zPaehTYqgO

— glassnode (@glassnode) June 29, 2022

With Bitcoin crashing, however, the whales are adding on to their balances and Pellicer said so far they don’t seem to doing it with the same intensity as the last bear cycle. Blockchain analytics Glassnode said that the whales are adding to the balance aggressively and acquired 140,000 BTC per month directly from the exchanges. The whales own as much as 8.69 million BTC or 45.6% of BTC’s total supply of 21 million as per Glassnode. The whales buying BTC at cheap prices can signal a return to a new bull cycle.

When asked about the probability of a scenario, Pellicer said there are no clear structures that point to a faster market recovery. There are some positive aspects and added pointing to the persistent confidence among the retail BTC investors with holders that have balances between 0.1 and BTC who are taking advantage of the market drop to accumulate at a larger pace:

“This fast accumulation pace by retail [investors] was only seen in the last two years only right after the Covid crash, and the price back then bounced hard after some weeks.”

As recently reported, With bitcoin continuing to experience adverse price movements and drop below $20,000 for the second time, the asset is on the edge of registering the worst-performing quarter in a decade. The data from CoinGlass shows that the main crypto is down by 60% in the second quarter which is about to end. There’s still some time left as the situation seems pretty dire and the asset is close to marking the worst quarter in terms of price movements since the resource keeps score as such, history will unlikely repeat itself as Q2 is often a bullish period for BTC.