Bitcoin whales enjoy the price crash to buy over $180 billion worth of BTC
- Bitcoin’s third-largest non-exchange whale has accumulated a total of 3038 BTC at an average price of $59,744.
- Whales and miners have been accumulating Bitcoin in batches throughout the recent drop in BTC price.
- Drop below $57,000 has sparked a sell-off in Bitcoin and Ethereum, analysts argue this is an “attractive entry” for traders and holders.
Whales started accumulating BTC through the dip below $60,000. Based on data from IntoTheBlock, the number of BTC addresses holding Bitcoin for over a year has hit an all-time high.
Bitcoin whales continue accumulation through price drop below $57,000
Bitcoin price dropped below $57,000 on November 18, and the accumulation by non-exchange whales hit a peak. The third-largest non-exchange whale scooped up 3038 Bitcoin tokens over four transactions, worth $180 billion.
Colin Wu, a Chinese cryptocurrency journalist, has reported it on a tweet:
According to BitInfoCharts, Bitcoin's third largest non-exchange whale address (1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ) has bought a total of 3038 BTC in batches for four consecutive days since the 16th, with an average price of approximately $59744.22. pic.twitter.com/GH1X05BI1W
— Wu Blockchain (@WuBlockchain) November 19, 2021
Historically, Bitcoin whale transactions have influenced BTC prices. The recent accumulation by BTC whales has turned investors bullish on Bitcoin.
Traders holding Bitcoin for over a year have acquired BTC at an average cost of $17,750. This implies that holders are at a great advantage.
Bitcoin funding rates, periodic payments to long or short traders based on the difference between perpetual contract and spot prices, have dropped. The funding rates are now lower than the level seen in Q1 2021.
Proponents consider the declining funding rates as a sign of dropping leverage. Though the asset’s price plunged below $57,000, analysts have argued that it is now an “attractive entry” for traders.
Delphi Digital, a research firm, recently published a report on crypto. The report argues that:
The initial sell-off was largely driven by a wave of liquidations rather than a fundamental shift in narrative.
Evaluating the recent BTC price trend, analysts are expecting a bounce in Bitcoin. @_Checkmatey_, a pseudonymous cryptocurrency analyst, is bullish on BTC.
At the very least, one should be expecting a #Bitcoin bounce right around now.
— _Checkmate.btc ⚡checkonchain.com (@_Checkmatey_) November 18, 2021
STH-SOPR has fallen below 1, which means top-buyers are spending their $BTC at a realised loss.
When top buyers capitulate, it is historically a local bottom. pic.twitter.com/hIao9LbvqF
FXStreet analysts expect the BTC price to drop to $57,000 as the correction has begun.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
