Bitcoin Whales Buy Up BTC As Prices Plummet, Accumulation Increases
6/14/20242 min read
The decline in Bitcoin (BTC) prices in recent days may be worrying for some traders, but it also presents a golden opportunity for others, especially whales.
Recent data from CryptoQuant highlights a significant trend of BTC accumulation by large holders, indicating strategic buying amidst market downturns.
Surge in Bitcoin Accumulation by Whales
AMBCrypto reports that, some Bitcoin addresses have accumulated large amounts of BTC as the price struggles. Specifically, more than 20,000 BTC were added to whale wallets during this period.
This accumulation is important because it shows that large holders are taking advantage of lower prices to strengthen their holdings, a strategic move often seen in volatile markets.
Data from CryptoQuant corroborates this trend, showing a significant increase in Bitcoin inflows to accumulation addresses.
This spike in accumulation coincided with a drop in prices, further underscoring the deliberate actions of these whales. The total accumulation during this period is worth more than US$1.3 billion, based on a BTC price of around US$67,000.
Decreasing Bitcoin Supply on Exchanges
As whales accumulate Bitcoin, the supply of BTC on exchanges continues to decline. This trend is important because it indicates that less BTC is available for sale, which could reduce selling pressure and potentially stabilize or increase prices in the future.
On June 10, the supply on exchanges was around 954,000 BTC. Currently, that number has fallen to around 939,000 BTC, marking the lowest supply on the exchange since 2021.
This decrease in supply on the exchange is in line with increased accumulation by whales and is considered a bullish signal.
This indicates strong confidence among holders in higher Bitcoin prices in the future, as they move their assets off exchanges for potential long-term holdings.
BTC Price Brief Rebound
Amidst this accumulation and decreasing supply on exchanges, Bitcoin experienced a brief rebound. Analysis of Bitcoin's daily performance shows a small recovery at the end of trading on June 12.
The price of Bitcoin increased by more than 1 percent, reaching around US$68,248. During the previous trading session, BTC even touched the price range of US$70,000, although it was unable to stay at this level.
This rebound, although small, shows that the market is responding to strategic buying by whales and reduced availability of BTC on exchanges. The combined effect of these factors may contribute to Bitcoin price stabilization in the near future.
Implications of Whale Accumulation
The strategic accumulation of Bitcoin by whales during price declines is a strong indicator of confidence in Bitcoin's long-term potential.
Whales, who often have significant influence on the market, typically buy large amounts of BTC when prices are lower to maximize future returns. Their actions can be a signal to other investors about potential price movements.
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