Bitcoin’s recent price decline has spurred a buying frenzy among the cryptocurrency’s largest investors, colloquially known as whales, which accumulated approximately $1.62 billion worth of the cryptocurrency in just 48 hours.
According to data from on-chain analytics firm Santiment shared by popular cryptocurrency analyst Ali Martinez, these high-net-worth investors bought 30,000 BTC in the span of 48 hours after a massive price drop hit the space.
That sell-off came amid a wider equities market rout caused by a confluence of various factors, including investors concerns surrounding economic growth and the potential overvaluation of artificial intelligence.
Economic data in the United States has started pointing to a potential recession after worst-than-unexpected unemployment data triggered what’s known as the Sahm rule, an indicator that measures the three-month moving average of the U.S. unemployment rate against its previous 12-month low.
Meanwhile, rising tensions in the Middle East exacerbated investor anxiety as Iran is expected to soon attack Israel in response to the killing of Hamas’s leader Ismail Haniyeh in Tehran.
In the past 48 hours, #Bitcoin whales acquired over 30,000 $BTC, valued at approximately $1.62 billion. This is evident from the surge in exchange outflows and the decrease in #BTC supply held on exchanges. pic.twitter.com/oV1aVu2tKc
— Ali (@ali_charts) August 6, 2024
The accumulation, per Martinez, is evident based on a surge in exchange outflows and a corresponding drop in the overall supply held on trading platforms. This suggests that whales are moving their holdings into cold storage, a practice often associated with long-term investment strategies.
The recent sell-off saw the price of Bitcoin plunged to a low under the $50,000 mark, which led to the accumulation. Notably, he amount of Bitcoin on exchanges has been seeing an increase in outflows “despite the fact that Bitcoin has entered into a fluctuation area since February.”
According to analysis published by on-chain analytics firm CryptoQuant, there has been a steady rise in Bitcoin outflows from exchanges in recent weeks, in a trend that is typically seen as bullish. A smaller supply of BTC exchanges means that the cryptocurrency’s price could rise if demand is maintained or grows.
The exchange outflows come at a time in which the US national debt has surpassed the $35 trillion milestone.
Featured image via Pixabay.
