|

Bitcoin whales quietly accumulate BTC in anticipation of strong rebound in the asset

  • The bullish divergence between whales accumulating Bitcoin as prices decline is typical of a rebound in BTC price. 
  • Large wallet investors are scooping up more than 1,000 BTC a day, as the largest cryptocurrency bleeds in response to SEC’s clampdown. 
  • Bitcoin price recovery is likely according to the bullish on-chain metrics. 

The US Securities & Exchange Commission’s (SEC) regulatory crackdown on crypto has wiped out over $100 billion from the market cap. While altcoins continue to crumble under the selling pressure from the legal tussle between the regulator and crypto exchanges, Bitcoin whales are scooping up tokens.

Also read: Top 5 cryptos traders are buying after SEC crackdown on $100 billion worth of assets

Bitcoin whales scoop up $25.75 million in BTC a day

Bitcoin network’s large wallet investors are accumulating the asset during the ongoing crypto bloodbath. Based on data from crypto intelligence tracker Santiment, whales are scooping up 1,000 BTC worth $25.75 million a day. 

Bitcoin whale accumulation

Bitcoin accumulation by whales 

As seen in the chart above, large wallet addresses on the Bitcoin network have scooped up 57,578 more BTC as the asset’s price declined 10% between April 9 and June 9. In the same timeframe, whales consistently added more than 1,000 BTC a day to their wallet addresses.

The SEC’s clampdown resulted in a significant decline in the market capitalization of altcoins. Moreover, Bitcoin’s dominance surged from 44.21% to 45.69%, based on CoinGecko data. Both rising BTC dominance and accumulation by whales are bullish for the asset.

The two bullish developments could catalyze a rebound in Bitcoin price. At the time of writing, Bitcoin price is $25,746 and the asset declined 5.2% over the past week. BTC is 62.7% below its all-time high of $69,044.

Author

Ekta Mourya

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.

More from Ekta Mourya
Share:

Editor's Picks

Bitcoin Weekly Forecast: Binance security breach and hawkish Fed push BTC lower
Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.
Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations
Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.
Bitcoin, Ether and XRP selloff wipes out $1.5 billion in leveraged crypto bets
Crypto traders betting on higher prices had about $1.29 billion in positions forcibly closed over the past 24 hours, as the selloff following Binance’s security breach pushed bitcoin, ether and smaller tokens lower. Total liquidations reached $1.53 billion by Friday morning in Asia, according to CoinGlass. Long positions, bets that prices would rise, accounted for 83.8% of the total.
Crypto Today: Bitcoin, Ethereum, XRP sell-off cools after Binance security breach
Cryptocurrency prices are on edge on Friday, with Bitcoin (BTC) delicately holding onto a short-term $78,000 support, Ethereum (ETH) edging lower near $2,200 and Ripple (XRP) attempting a recovery above support established at $1.20. The cooldown follows Binance, the largest crypto exchange, after it reported a hack that impacted about $6.3 billion.
Bitcoin: Binance security breach and hawkish Fed push BTC lower
Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.