Bitcoin whales, or those holding at least 100 BTC, took advantage of the recent dip in Bitcoin prices by accumulating 47,000 BTC within 24 hours. While panic selling was observed in many market segments, the whales seemed to have bought the dip with size. This accumulation of coins comes in the midst of a new era, as highlighted by CryptoQuant CEO Ki Young Ju. The increase in whale balances has been significant since the approval of Bitcoin spot ETFs in the United States, but Young Ju clarified that this week’s spike was not ETF related.
Young Ju also pointed out that new Bitcoin whales, including spot ETF buyers, had gone underwater on their investments after Bitcoin’s price plunged below $60,800. This was also supported by analysis from Glassnode analyst James Check, who found that Bitcoin’s broader short-term holder cost basis was $59,600 as of Wednesday. Short-term holders are more likely to panic sell once their cost basis is lost, leading to further price volatility. Despite this, Check recommended buying during the dip, and those who followed his advice have seen profitability as Bitcoin has surged back to $62,700.
However, some analysts suggest that the increased whale address balance may not necessarily indicate whales accumulating more coins. Instead, it could be attributed to innocent wallet management flow among larger entities. TXMCtrades, an analyst, cautioned against jumping to wild conclusions based on this data, as there are many unidentified on-chain entities with significant footprints. On the other hand, Bitcoin ETF data indicates that the Grayscale Bitcoin Trust (GBTC) saw net inflows on Friday for the first time since its launch as a Bitcoin spot ETF. This could be a signal of strong inflows for Bitcoin ETFs in general, marking a positive trend in the market.
Overall, the accumulation of Bitcoin by whales during this recent dip reflects a positive sentiment among large holders of the digital currency. Despite some initial panic selling in the market, whales seem to have taken advantage of the lower prices to increase their holdings. This behavior is seen as a bullish indicator for Bitcoin’s future price movements, especially as the digital currency continues to gain mainstream acceptance through products like spot ETFs. The data suggests that the recent dip in Bitcoin prices was not a cause for concern for these large investors, but rather an opportunity to strengthen their positions in the market.
