Cryptocurrency whales are aggressively buying Bitcoin $BTC
#BTCUSD This could hint at a potential market recovery.
According to Spot On Chain, one major investor with the address “36LMb…” withdrew 999,999 BTC worth $55.09 million from the Binance crypto exchange last week. Bitcoin was trading at $55,114 at the time of the transaction.
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Crypto Whales Bought $227 Million in Bitcoin
The latest withdrawal by crypto whale “36LMb…” is part of a larger trend in which major investors have collectively withdrawn more than 4,014 BTC worth $227.7 million from crypto exchanges. Here are the most significant transactions:
"1KuPi..." withdrew 1,110 BTC worth $64.8 million on September 2 and 5;
"bc1qg" transferred 1,381 BTC worth $78.25 million between September 2nd and 6th;
new crypto wallet "39xG8..." withdrew 100 BTC worth $5.65 million on September 4;
"bc1qd..." transferred 433 BTC worth $23.93 million between September 5th and 9th.
Whales withdrew funds amid an 11% drop in Bitcoin. The price of the leading cryptocurrency by capitalization dropped due to increased outflows from American exchange-traded funds (ETFs) based on BTC. In total, the instrument lost about $1.2 billion over eight days.
Last week, Bitcoin fell to $52,550. Large investors saw the decline as a great opportunity to buy the asset. Usually, such dynamics signal an upcoming market recovery.
"We saw the biggest spike in negative keywords since the market crash in early August... this turned out to be an ideal time to buy," said Brian Quinlivan, lead analyst at Santiment.
According to CoinGecko, at the time of writing, Bitcoin is trading at $55,312. Over the past 24 hours, the price of BTC has increased by 1.2%.
In light of the recovery, some investors, including former BitMEX CEO Arthur Hayes, closed their short positions in Bitcoin. Hayes made a profit of 3%.
Economic data is also weighing on sentiment in the crypto community. US non-farm payrolls data released late last week showed that the economy added just 142,000 jobs in August. The expected number was 164,000.
The recent weak earnings report has bolstered hopes that the Federal Reserve will cut its key rate by 50 basis points. The meeting on this issue will take place on September 18.
"We expect the Fed to cut rates by 50 basis points to get ahead of the curve, as a 25 basis point cut would be too slow to prevent a more severe impact given the slow impact of monetary policy over several quarters," said Marcus Thielen of 10X Research.
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