Bitcoin whales took full advantage of the crypto market slump earlier this month, accumulating 71,000 Bitcoin amid the fastest rate of Bitcoin stacking since April 2023.
Significant Accumulation During Market Dip
A significant portion of the accumulated Bitcoin — worth $4.3 billion at current prices — was scooped up when Bitcoin retraced to $54,200 on July 5, according to a chart from cryptocurrency analytics firm IntoTheBlock. This large-scale acquisition demonstrates the strategic moves of major Bitcoin holders during market downturns.
CryptoQuant notes that Bitcoin whales have been stacking Bitcoin at the fastest rate (on a 30-day moving average) since April 2023, shortly after the collapse of several local banks in the US. “This suggests that the bottoming out of #BTC may be nearly complete,” CryptoQuant analyst Minkyu Woo added in a separate post on X.
Diverging Behaviors of Large and Small Traders
While Bitcoin whales have been accumulating, smaller traders have been selling off their holdings during the current dip. Cryptocurrency analytics firm Santiment observed a net increase of 261 Bitcoin wallets holding at least 10 Bitcoin over the first 10 days of July. “[This] should give traders comfort in a long-term bullish future,” Santiment commented.
| Category | Observation |
|---|---|
| Whales’ Accumulation | 71,000 BTC accumulated |
| Wallets with ≥10 BTC | 261 net increase in first 10 days of July |
| Smaller Traders | Selling off their holdings during the dip |
| Whale Stacking Rate | Fastest since April 2023 |
Not All Whales Are Holding
It appears not all Bitcoin whales are planning to stack and hodl (hold on for dear life). On July 14, a dormant Bitcoin whale moved after a 12-year hiatus, transferring 1,000 Bitcoin worth nearly $60 million to two new wallets, as reported by Whale Alert.
Bitcoin is currently trading at $60,850, down 8.1% over the last month. Industry pundits attribute the recent price slump to multiple factors, including Mt. Gox preparing to offload $8 billion to its creditors and the German government selling nearly 50,000 Bitcoin worth $3 billion.
However, signs of a price recovery emerged over the weekend, with Bitcoin breaking the $60,000 resistance barrier and increasing by 6% since trading hours closed on Friday. This recovery included a sharp increase immediately after US presidential candidate Donald Trump survived an assassination attempt while speaking at a rally in Butler, Pennsylvania, on July 13.
The recent activity among Bitcoin whales during the market slump highlights the strategic acquisitions by major holders, which could signal a nearing bottom in Bitcoin prices. Despite pressure from large-scale Bitcoin sales by Mt. Gox and the German government, the market has shown resilience, with signs of recovery emerging. As the crypto landscape continues to evolve, the actions of both large and small investors will play crucial roles in shaping future market trends.
Featured image credit: DALL-E by ChatGPT
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