In a dramatic move during a recent market correction, Bitcoin whales accumulated a staggering $1.4 billion worth of BTC in just 24 hours. This massive influx came as Bitcoin's supply on exchanges fell to its lowest since December 2021, signaling a potential shift in market dynamics. Let's delve into the details of this significant event and its implications for the cryptocurrency market.
Whale Accumulation Surge:
On June 11, Bitcoin whales, defined as entities holding large amounts of BTC, significantly increased their holdings. They scooped up 20,600 BTC, worth approximately $1.38 billion. This marked the largest inflow day since February 28, a period when Bitcoin was nearing a new all-time high and spot Bitcoin exchange-traded funds were still in their infancy. The recent accumulation indicates that these large holders see value in buying during price dips.
Price Dynamics:
The whale accumulation coincided with Bitcoin's price experiencing a substantial drop from $71,650 on June 7 to around $69,000. This price slump was leveraged by the whales to increase their holdings. The data, provided by blockchain analytics firm CryptoQuant, highlights how the inflows into whale accounts ranged between 1,300 and 2,200 Bitcoin per day during the correction period. The price plummeted again a few days later, leading to a massive inflow on June 11. Interestingly, the Bitcoin price briefly spiked after better-than-expected CPI results on June 12, trading at around $67,500 at the time of writing.
Exchange Supply Decrease:
Simultaneously, Bitcoin's supply on cryptocurrency exchanges fell to 942,000, its lowest level since December 22, 2021, according to on-chain intelligence platform Santiment. A decrease in Bitcoin reserves on exchanges often signals a strengthening market, as investors are more likely to hold onto their assets in anticipation of future price appreciation. This drop in supply can create upward pressure on prices if demand remains constant or increases.
Ethereum Whale Activity:
The whale activity was not limited to Bitcoin. Ethereum whales were also active, purchasing over 240,000 Ether (ETH), worth nearly $840 million at current prices. Industry analyst Ali Martinez, citing Santiment data, reported this substantial accumulation. However, unlike Bitcoin, the supply of Ether on cryptocurrency exchanges has increased recently. There are currently 17.98 million Ether, worth $63.1 billion, held on exchanges. Ether's price has also seen a downturn, dropping 8% from $3,815 on June 7 to $3,510 at the time of writing.
The recent activity of Bitcoin and Ethereum whales highlights significant market maneuvers amid a correction phase. Bitcoin's dwindling supply on exchanges could indicate a bullish outlook, as large holders consolidate their positions and reduce the available supply for trading.
This trend may suggest confidence in future price increases and a potential upward trajectory in the mid to long term.
Conversely, Ethereum's rising exchange supply presents a mixed signal, as it might indicate that holders are preparing to sell or trade their assets.
Investors should keep a close eye on these trends, as whale activities often precede significant market movements.
Understanding the behaviors of large holders can provide valuable insights into potential market directions and help inform investment decisions.
The cryptocurrency market remains highly volatile, and these dynamics underscore the importance of staying informed and adaptable in the face of rapid changes.
Source: Cointelegraph
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