The past week brought a downturn for both Bitcoin and altcoins, possibly triggered by the macroeconomic implications of the escalating tensions between Iran and Israel over the weekend.
As a result, Bitcoin’s value dipped below $60,000, causing concern among investors. However, amid the uncertainty, large Bitcoin holders known as “whales” seized the opportunity to strengthen their positions.
Whales on a Buying Spree
Recent data reveals that whale wallets, holding over 0.1% of the total Bitcoin supply, significantly increased their buying activity during the market dip. On April 18th, these wallets acquired an impressive 19,760 BTC at an average price of $62.5k per Bitcoin.
Bitcoin whales may have finally started buying the dip
Yesterday, the biggest Bitcoin holders, holding over 0.1% of the total supply, collectively added 19,760 Bitcoins to their holdings at an average price of $62.5k. Historically, accumulations by these addresses have often… pic.twitter.com/c8K5uhkna4
— IntoTheBlock (@intotheblock) April 19, 2024
This accumulation event has caught the attention of market observers, as whale activity often serves as a precursor to upward price movements in the cryptocurrency market.
Mysterious Billion-Dollar Transfer
Amidst the buying spree, Whale Alert, a leading blockchain tracker, reported a massive transfer of 16,276 BTC, worth approximately $1 billion, from an undisclosed wallet to Binance, a major cryptocurrency exchange. The reason behind this large transaction remains a mystery, sparking speculation within the cryptocurrency community.
16,276 #BTC (1,006,601,602 USD) transferred from unknown wallet to #Binancehttps://t.co/84qs00PLrp
— Whale Alert (@whale_alert) April 18, 2024
Bullish Signs on the Horizon
Historically, significant whale accumulation has often been followed by notable increases in Bitcoin’s price, leading many analysts to view the recent whale activity as a bullish signal for the market. Despite the turbulence, Bitcoin has bounced back, now priced at $65,023, marking a 4.55% increase in the last 24 hours and pushing its market capitalization to $1.27 trillion.
The developments follow reports that the Grayscale Bitcoin Trust (GBTC), a prominent Bitcoin investment product, has seen a significant decline in its Bitcoin (BTC) holdings. This is despite the outflows recently slowing down.
Markus Thielen, market analyst and the founder of 10x Research recently said that the stock and cryptocurrency markets could be approaching a significant price correction. He explained in an April 16 research note:
The primary trigger is the unexpected and persistent inflation. With the bond market now projecting less than three cuts and 10-year Treasury Yields surpassing 4.50%, we may have arrived at a crucial tipping point for risk assets.
Featured image: Ideogram
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