[Whales accumulated 71,000 Bitcoins during the decline]
According to data from IntoTheBlock, Bitcoin whales added 71,000 BTC worth $3.9 billion during the recent market correction, an accumulation that occurred as the price of Bitcoin fell below $54,000.
Meanwhile, Bitcoin ETFs have also experienced significant inflows. The funds attracted $300 million in new investment on Monday, the highest single-day inflow since early June.
The price drop was driven by multiple factors, including payments from Mt. Gox's creditors. About a quarter of Mt. Gox’s cryptocurrency was moved to new wallets, causing the price of Bitcoin to drop to $53,600. Administrators face an October deadline to complete the allocation process.
Additionally, the German government sold more than 80% of its Bitcoin holdings in the past week, adding to the selling pressure. Nonetheless, large holders holding more than 0.1% of the circulating supply saw the dip as a buying opportunity.
The market decline also triggered a large number of liquidations across decentralized finance (DeFi) protocols. Aave V3 Ethereum, the on-chain lending protocol with the largest total value locked, liquidated $10 million worth of tokens, the highest liquidation volume since mid-April.
Despite short-term market turmoil, the actions of whales and institutional investors via ETFs demonstrate strong confidence in Bitcoin’s long-term potential.
However, cryptocurrency market prices are likely to remain volatile until the Federal Reserve’s expected interest rate cut in September. In addition, investors are also deterred by the excess supply of Bitcoin that could be sold off.
