As Bitcoin and the broader crypto market continue to decline, large investors, commonly known as whales, have reacted differently to the situation. Several on-chain data show a trend of accumulation and dumping among these entities, sparking discussions among observers in the market.
Over the past seven days, the price of the flagship crypto asset has shown major volatility, trading between $55k and $59k respectively, showing possible signs of more decline. At the time of writing, data show that the price of Bitcoin has dropped by 3.92% over the last week to trade around $56,000 today.
Whale Dumps 380 BTC to Binance
This case is one of the notable ones that happened in the last 24 hours. According to a report from Lookonchain, a blockchain transaction tracker, this whale deposited 380 BTC, valued at approximately $21.34 million, to the largest crypto exchange by trade volume, Binance, in the last 4 hours.
A large deposit such as this to centralized exchanges often signifies a sell-off. This is noteworthy because the actions of large investors often affect the sentiment of retail investors and might ignite a series of major sell-offs across the market.
Notably, this is not the first time this whale has carried out significant dumps. Lookonchain also highlighted that over the past seven days, this whale has deposited a staggering 4,544 BTC, worth $265 million, to the same exchange.
Source: Lookonchain/X 1,145 BTC Accumulation Spotted
In contrast to the previously mentioned whale, another entity has been spotted accumulating sizeable amounts of Bitcoins, taking advantage of the market dip to get in on discounted prices. According to data from Spot on Chain, an AI-driven on-chain insight platform, this whale gathered 1,145 BTC, valued at $65.1 million in the past 4 days.
It is worth knowing that this whale often accumulates coins in periods of decline, a strategic action to buy the dip ahead of a potential market uptrend. Particularly, the data show that the whale purchased this much BTC across 7 transactions at an average price of $56,841. At this point, it is impossible to know whether the whale will continue the accumulation spree, or move to dump his holdings.
Source: Spotonchain/X Bitcoin Price Movement
Meanwhile, the price of the largest crypto by market cap, Bitcoin has been trading in red over the last day. According to CoinMarketCap data, BTC changed hands at $56,350, representing a 1.2% decline at the time of writing.
Also, its one-day trading volume plummeted by 3.96% to $29.8 billion signifying reducing activities among investors and traders. After touching a one-month peak of $64k on August 26, Bitcoin has mostly traded below $60k since the beginning of September.
Meanwhile, Coinfomania previously reported an uptick in the number of Bitcoin wallets holding at least 100 BTC. Per the report, the figure reached a 17-month high after the emergence of a notable 283 new wallets in this category.
The post Bitcoin Whales Show Varied Reactions to Price Downtrend appeared first on Coinfomania.
