Bitcoin Whales Seize the Opportunity, Acquiring 47,000 BTC in a Single Day
Andrew Throuvalas
Updated: May 3, 2024, 18:22 EDT | 1 min read
Source: Midjourney
While various market segments experienced panic selling of Bitcoin (BTC) this week, it appears that the largest holders of the digital currency, known as whales, took advantage of the price drop.
Whales Take Advantage of Bitcoin Dip
Data provided by CryptoQuant CEO Ki Young Ju reveals that active Bitcoin whale addresses accumulated 47,000 BTC within 24 hours following the decline in Bitcoin’s value to below $57,000 per coin.
An active whale address refers to an address that owns at least 100 BTC and has engaged in on-chain activity within the past day. Young Ju clarified that the balances do not include centralized exchanges and Bitcoin miners, but do encompass certain Bitcoin custodians, such as Bitcoin ETF providers.
“We’re witnessing a new era,” Young Ju tweeted about the data. Although whale balances have significantly increased since the approval of Bitcoin spot ETFs in the United States this year, the CEO stated that this week’s surge in balance was “not ETF related.”
A day prior, Young Ju highlighted how new Bitcoin whales, including spot ETF buyers, faced losses on their investments when the price of Bitcoin dropped below $60,800.
Similarly, analysis conducted by lead Glassnode analyst James Check indicated that Bitcoin’s overall short-term holder cost basis on Wednesday was $59,600. Historically, short-term holders are more likely to sell their holdings in a panic once their cost basis is lost, which exacerbates price volatility.
However, Check also noted that the size of the dip was consistent with typical Bitcoin bull markets and predicted that it would present a good buying opportunity. As of Friday, Bitcoin has rebounded to $62,700, proving profitable for those who followed his advice.
Interpreting the Data
According to analyst TXMCtrades, the increase in whale address balances may not necessarily indicate whales accumulating more coins, but rather reflect “innocuous wallet management flow” among larger entities.
“There are countless unidentified on-chain entities with significant footprints, but those who don’t analyze this data regularly may jump to wild conclusions,” he tweeted on Friday.
Bitcoin ETF data reveals that the Grayscale Bitcoin Trust (GBTC) experienced net inflows on Friday, signaling the first strong inflow day for Bitcoin ETFs in almost a month since the launch of GBTC as a Bitcoin spot ETF.
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