Bitcoin #Whales Bought 47,000 BTC Worth $2.7Bn While Prices Tanked Below $57,000
Bitcoin's drop below $60,000 marked a departure from its previous trend. This decline led to the liquidation of numerous leveraged long positions, amounting to hundreds, if not billions, of dollars.
Following this market contraction, the price of BTC entered a range last observed in early March. During that period, BTC was poised to surge to new record highs, with initial targets set at $70,000.
However, the current scenario has taken a different turn, causing distress among investors. The reaction varies depending on one's position: speculators have been shaken out of the market, while long-term holders (HODLers) are considering increasing their holdings by buying more during price dips.
Bitcoin Whales Are Seizing Opportunities During BTC #Dips
Despite the downward pressure on Bitcoin, whales are capitalizing on the situation. Ki Young Ju, the founder of CryptoQuant, highlighted that whales acquired over 47,000 BTC within just 24 hours after the dip.
Coincidentally, this buying spree by whales coincided with a stabilization in BTC prices, which rebounded from the lows of $56,500 on May 1, inching closer to the resistance level at $60,000. The infusion of new capital may explain the sudden respite in selling pressure, leading to price stabilization.
While this development is encouraging for bullish sentiments, the anonymous nature of BTC transactions makes it challenging to identify the entities behind this accumulation. What's evident is the surge in demand during price dips.
This surge notably occurred as investors in spot Bitcoin exchange-traded funds (#ETFs) rushed to exit their positions, offloading assets worth over $478.22 million. This selling pressure coincided with whales acquiring 47,000 BTC, which, despite its scale, had an insignificant impact on prices, ultimately leading to a price rise.
However, until fresh data confirms sustained demand, BTC prices are likely to remain stagnant, struggling to breach the critical $60,000 level.
