A Bitcoin whale took full advantage of the latest crypto market mayhem, which saw BTC retrace below the $57,000 level. Even as the flagship cryptocurrency dropped to a little below 22% under its current all-time high, the whale scooped up BTC worth roughly $49 million.
Bitcoin Whale Accumulation
According to blockchain analytics firm Lookonchain, a whale recently purchased BTC worth $30.82 million. The whale has been undeterred by the price weakness in cryptocurrencies.
Bitcoin dropped over 3 percent to $55,847 on Sept.5 after failing to secure a strong foothold above $58,000 on Wednesday. The price of the largest and oldest crypto by market cap reached $65,000 on Aug. 25 and has been plummeting ever since, with the downturn characterized by short-lived shallow rallies.
Lookonchain observed that the whale acquired 862 BTC valued at around $49 million at an average price of $56,933 over the past three days.
A whale bought 545 $BTC($30.82M) again after the $BTC price dropped!This whale has bought 862 $BTC($49M) from the bottom at an average price of $56,993 in the past 3 days.Address:bc1qg32kay34ma85prkvxwtx3gxlm9w5yaeffz8djs pic.twitter.com/qu2eesnqMk
— Lookonchain (@lookonchain) September 4, 2024
Notably, this is not the first time whales have bought the dip in recent times. Fellow on-chain analytics firm Santiment observed in an X post that whales and sharks with between 10 and 10K BTC have stacked 133.3K Bitcoin over the last month as smaller traders panic-sold their bags.
The accumulation of BTC by whales and sharks indicates a firm belief in Bitcoin’s long-term value despite short-term volatility. At press time, Bitcoin was changing hands at $56,038.29.
Relief Rally Soon?
The Bitcoin price has demoralized new investors and disappointed bulls since its last lifetime high of $73,737 on March 14. Notably, the apex crypto has failed to reclaim that ATH despite the latest block subsidy halving in April, an event that has historically propelled the price higher.
Data tracking firm CryptoQuant noted that BTC price action will remain “frustrating” despite the forthcoming U.S. interest rate cuts.
“Due to the expected US base rate cut on September 18, a short-term rebound due to positive market sentiment can be expected, but if the market atmosphere is not significantly reversed, it is highly likely that frustrating movements will continue in 2024,” contributor Crypto Dan said in a blog.
