This week, as many market segments were panic-selling their Bitcoin (BTC), the digital currency’s largest whales were seen buying the dip. According to data provided by CryptoQuant CEO Ki Young Ju, active Bitcoin whale addresses accumulated 47,000 BTC within 24 hours following Bitcoin’s slide below $57,000 per coin. These active whale addresses are defined as owning at least 100 BTC and engaging in on-chain activity within the past day. Young Ju noted that whale balances have significantly increased since Bitcoin spot ETFs were approved in the United States this year, but the recent balance spike was not ETF related.
Prior to this week’s dip, new Bitcoin whales, including spot ETF buyers, went underwater on their investments after Bitcoin plummeted below $60,800. Glassnode analyst James Check found that Bitcoin’s broader short-term holder cost basis as of Wednesday was $59,600, which could potentially lead to panic selling by short-term holders. Despite this, Check also mentioned that the dip was of a normal size seen in typical Bitcoin bull markets and suggested that it could be a good time to buy. As of Friday, Bitcoin has rebounded to $62,700, proving to be profitable for those who followed the analyst’s advice.
However, analyst TXMCtrades pointed out that the increased whale address balance may not necessarily indicate whales accumulating coins, but instead could be a result of “innocuous wallet management flow” among larger entities. He cautioned against jumping to conclusions based on on-chain data without a full understanding of the situation. Meanwhile, Bitcoin ETF data showed that the Grayscale Bitcoin Trust (GBTC) had net inflows on Friday for the first time since launching as a Bitcoin spot ETF, potentially signaling a strong inflow day for Bitcoin ETFs as a whole after almost a month of outflows.
Overall, the data suggests that while many market segments were selling off their Bitcoin this week, the digital currency’s largest whales were taking advantage of the dip to accumulate more coins. The increased whale address balance seen in the past 24 hours may not be indicative of whales accumulating coins, but rather could be a result of innocent wallet management activities among larger entities. The recent dip in Bitcoin price was viewed as a standard occurrence in typical Bitcoin bull markets, with analysts recommending it as a good time to buy. As Bitcoin rebounded to $62,700 on Friday, those who followed this advice likely benefitted from the price increase.
