Bitcoin Whales Accumulate Coins Amid Market Downturn and ETF Rejections
Bitcoin Whales Accumulate Despite Price Drop – Is a Recovery Imminent?
The number of Bitcoin addresses with over 1000 coins has reached a new all-time high. Despite the recent price drop, the so-called Bitcoin whales, or large investors with significant amounts of Bitcoin, continue to accumulate. But what does this mean for the market and can a recovery be expected soon?
The Current Figures
According to data from IntoTheBlock, the number of Bitcoin addresses holding over 1,000 BTC has reached a new all-time high. This is happening despite the performance of the cryptocurrency following the approval of ETFs. At the current time, the price for the leading cryptocurrency is at $41,760, as data from CoinMarketCap shows. This represents a drop of 15% from the high of $48,625, which was reached one day after the ETFs became tradable.
Smaller Whales Fare Differently
While Bitcoin whales with over 1000 coins have intensified their accumulation despite falling prices, investors holding between 1 and 1000 coins have reduced their holdings in recent days. According to data from Santiment, this group of BTC investors began distributing coins on January 5, likely due to a report published two days earlier by crypto investment service provider Matrixport. The report anticipated that the U.S. Securities and Exchange Commission (SEC) would reject all pending applications for a spot-BTC-ETF.
At this point in time, the weighted sentiment of BTC is at -0.49. It has been negative since January 15 and this is reflected in the coin’s price drop since then. The poor sentiment in the BTC market is also confirmed by the decreased open interest in futures. According to data from Coinglass, it has dropped by 15% since the launch of the ETFs.
The current data suggests that despite the price drop in Bitcoin, a group of large investors, the so-called whales, continue to accumulate coins. This could be an indication that these investors are betting on a soon recovery of the market. However, it remains to be seen how the market will continue to develop and whether this strategy will pay off.
Sources: IntoTheBlock, CoinMarketCap, Santiment, Matrixport, Coinglass