Institutional investors are seizing the opportunity to buy Bitcoin amid its recent price correction, according to on-chain data. Market intelligence platform CryptoQuant revealed that Bitcoin wallets holding between 1000 and 10,000 BTC have been accumulating coins at their second-fastest rate this year since July began. Last week, these entities added 101,600 BTC to their blockchain addresses, even during a period of low volume and inflows to U.S. Bitcoin ETF products.

This indicates a true "buying the dip" process among large players, unlike the demand seen in March, which was more linked to fundraising. Bitcoin's price has consolidated since reaching its all-time high of $73,700 in March, with large holder balances climbing at a slower pace throughout April and May, before increasing in June and July.

Notably, short-term Bitcoin holders, those holding their coins for between 1 and 3 months, have capitulated over the past month, particularly last week when BTC dropped below $54,000. Blockchain analyst El Crypto Tavo suggests that short-term holder capitulation is generally a good sign that investors should buy in, signaling optimal entry points in a bull market.