3 months ago
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Since the latest major downturn, Bitcoin has stabilized within the $55,000 to $57,000 range.
The recent dip in the Bitcoin value below the $50,000 mark on August 5 and 6 sent ripples of anxiety through the market. However, while many investors were gripped by panic, seasoned market players saw this as an opportunity. According to the onchain data, Bitcoin whale transactions reached their highest levels since early April during this period.
As per a recent X post by Santiment, the wallets with holdings between 10 and 1,000 BTC “rapidly accumulated” when the price went to as low as $48,800. It states:
“August 5th and 6th saw the highest level of Bitcoin whale transactions since the first week of April.”
Santiment further reveals that during this downtrend period, Bitcoin saw 5,738 transactions worth over $1 million and 28,319 transactions worth over $100,000.
Moreover, the trend of accumulating Bitcoin wasn’t limited to just a few days. Over the past month, long-term Bitcoin holder addresses have increased their holdings by 404,000 BTC, equivalent to over $23 billion. This figure includes 40,000 BTC accumulated through spot Bitcoin ETFs. However, it is important to note that the accumulation through ETFs did not happen during the latest dip, as these investment funds saw an aggregate outflow of $554 million between August 2 and 6.
CryptoQuant CEO Ki Young Ju finds these figures as a clear sign of massive accumulation during this prolonged over month-long correction period. Moreover, there is no major selling pressure from older Bitcoin whales—those who have held BTC for over three years, as they sold their holdings to new whales between March and June.
Meanwhile, data by CryptoQuant reveals that Bitcoin supply on centralized exchange platforms is also at a multi-year low. Whales with over 1,000 BTC have been withdrawing their assets from exchanges at the highest rate since 2015. This trend towards self-custody suggests a low intention to sell, suggesting that more long-term investors are interested in the largest cryptocurrency.
What’s Next?
Since the latest major downturn, Bitcoin has stabilized within the $55,000 to $57,000 range. Additionally, its market capitalization has rebounded, climbing from $951 billion on August 5 to $1.12 trillion today. The US spot ETFs also broke the three-day outflow streak by recording an inflow of $45.14 million on August 7.
Despite this recovery, BitMEX co-founder Arthur Hayes suggests that the cryptocurrency market will see another wave of downfall in the coming days. Additionally, Wednesday’s Ethereum sell-off by Jump Trading can potentially result in higher selling pressure.
“The absence of [ETF] buyers during this dip and the persistent liquidation pressure from various players remain a significant concern,” Market research firm 10x Research reads.
