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While numerous market sectors engaged in panic selling of their Bitcoin (BTC) this week, the largest whales in the digital currency space appear to have capitalized on the dip by making substantial purchases.
Whales Acquire The Bitcoin Dip
As per information shared by CryptoQuant CEO Ki Young Ju, active Bitcoin whale addresses acquired 47,000 BTC within a 24-hour period following Bitcoin’s decline this week below $57,000 per coin.
An active whale address is characterized by holding a minimum of 100 BTC and having participated in on-chain activities within the previous day. Young Ju noted that these balances exclude centralized exchanges and Bitcoin miners, but do include certain Bitcoin custodians such as Bitcoin ETF providers.
“We’re entering a new era,” Young Ju stated on Twitter regarding the data. Although whale balances have notably risen since the approval of Bitcoin spot ETFs in the United States this year, the executive indicated that this week’s balance increase was “not ETF related.”
#Bitcoin whales accumulated 47K $BTC in the past 24 hours. We’re entering a new era. pic.twitter.com/SXgzToN8GU
— Ki Young Ju (@ki_young_ju) May 3, 2024
The day before, Young Ju pointed out that new Bitcoin whales, including those purchasing spot ETFs, found themselves at a loss on their investments after Bitcoin fell below $60,800.
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In a similar vein, analysis from lead Glassnode analyst James Check revealed that Bitcoin’s overall short-term holder cost basis as of Wednesday was $59,600. Statistically, short-term holders are more prone to panic selling their assets once their cost basis is breached, intensifying price volatility during such times.
Nonetheless, Check also remarked that the dip was of a typical magnitude observed in standard Bitcoin bull markets, suggesting it could be an opportune moment to buy. As of Friday, Bitcoin had rebounded to $62,700, proving advantageous for those who heeded his advice.
Interpreting The Data
According to analyst TXMCtrades, the rise in whale address balances may not necessarily indicate that whales are accumulating coins, but could instead reflect “innocuous wallet management flow” among larger entities.
“There are hundreds/thousands of unidentified on-chain entities with significant footprints, but individuals who do not analyze this data regularly may be inclined to jump to unfounded conclusions,” he wrote on Twitter on Friday.
Bitcoin ETF data indicates that the Grayscale Bitcoin Trust (GBTC) experienced net inflows on Friday for the first time since its launch as a Bitcoin spot ETF, potentially marking the first significant inflow day for Bitcoin ETFs overall in nearly a month.
The post Bitcoin Whales Bought The Dip, Netting 47,000 BTC In 24 Hours appeared first on Cryptonews.
