Bitcoin whales rapidly accumulated BTC as prices dipped below $50,000, marking the highest transaction levels in 4 months amid a significant market downturn.
Bitcoin whales have been on a buying spree amid the recent crypto market downturn, accumulating significant amounts of BTC as prices fell below $50,000. Onchain analytics platform Santiment revealed that whale transactions hit their highest levels in four months, with significant activity on August 5 and 6 during the market rout dubbed "Crypto Black Monday."
Key Points:
Whale Accumulation: Santiment reported that wallets holding between 10 and 1,000 BTC rapidly accumulated Bitcoin as its price dipped below $50,000.
Transaction Surge: On August 5 and 6, there were 28,319 BTC transactions worth over $100,000 and 5,738 transactions worth more than $1 million.
Price Drop and Recovery: Bitcoin's price fell around 18% on August 5, dropping from over $60,000 to below $50,000 before recovering to $57,000.
Long-Term Holders: CryptoQuant's Ki Young Ju noted that whales holding BTC for more than three years have not been selling, indicating strong accumulation.
Exchange Movements: Before the slump, whales moved Bitcoin off exchanges at the highest rate in nine years.
ETF Outflows: In contrast, U.S. spot Bitcoin ETFs saw significant outflows, with $554 million withdrawn between August 2 and 6, raising market concerns.
The recent surge in Bitcoin whale transactions during the market downturn highlights a strategic accumulation by major holders despite significant price drops. While long-term holders continue to consolidate their positions, the contrasting outflows from Bitcoin ETFs indicate a complex market sentiment. The continued accumulation by whales suggests confidence in Bitcoin's long-term value, even as short-term volatility persists.
Source: Cointelegraph
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