Bitcoin large investors, commonly known as whales, have increased their buying activities not minding the current state of the market. This is significant as they take advantage of the falling price to accumulate the asset at a discounted value. However, the growing activities have not impacted the market conditions as investors’ confidence continues to wane.
In a previous report, Coinfomania highlighted the reasons behind the current Bitcoin crash. According to the report, BTC falling below the critical support level of $58,450, and a decline in exchange and on-chain activities are attributed to the falling prices in the market today.
Bitcoin Whale Activity Surges
A recent report by Santiment highlighted the growing trends in Bitcoin whale activities over the past few months. According to the report, these giant investors are growing in numbers as reflected in the number of wallets holding at least 100 BTC. Santiment noted that an additional 283 wallets have emerged in this category in just one month.
Consequently, there are now a total of 16,120 wallets holding at least 100 BTC which has broken a 17-month high. Notably, this accumulation coincides with a reduction in holdings by smaller traders who have suffered the pressure of the current falling price.
Source: Santiment/X
Several analysts including the CEO of Blockstream, Adam Back, have commented on the significant rise in the Bitcoin whale activity, referring to it as a positive sign for the market since it has historically preceded new high levels for Bitcoin.
Also, Axel Adler Jr, an author at CryptoQuant, pointed out that the rise in BTC large holding could be fueled by retail traders selling at a loss. According to him, over the past month, short-term traders, particularly those that do between 1 to 3 months, have been trading at a loss.
“In the current bull market, the metric has not fallen below 17%, the current figure is -8%. If it continues to decline, the number of people willing to sell coins at a loss could double,” he said.
Ultimately, he encouraged investors to hold their positions long-term rather than letting FUD push them to offload their coins without profits.
Source: Axel Adler Jr/X
In an earlier post, Axel emphasized that the market is still in the bull cycle, disregarding its current state. He noted that according to statistics, a bull cycle usually lasts for 796 days while a bear market lasts 337 days. He stressed that the current bull cycle has only been on for 628 days, pointing out that it has not yet reached its average.
Meanwhile, the price of Bitcoin traded at $67,648 at the time of writing, signifying a 0.86% decline in the last 24 hours.
The post Bitcoin Whale Activity on the Rise Amid Market Downtrend appeared first on Coinfomania.
