What is the impact of the massive purchase of BTC?
It is worth noting that the recent institutional purchases of Bitcoin show a strategic means of resolutely buying the asset even if the price falls. Data obtained from the on-chain analysis platform CryptoQuant shows that these big buyers are not just speculating, but have strong confidence in the future value of Bitcoin.
These investors are actively hoarding coins during the recent economic downturn, and the motivation behind their purchases is different from the accumulation behavior in the previous period. Analysts pointed out in the CryptoQuant QuickTake post:
Unlike the situation in March, when demand was more related to financing, the current institutional accumulation may mean a real "buy on the dip" process for large players.
According to CryptoQuant analysts, large-scale Bitcoin accumulation by institutional investors began in March. Although the price of Bitcoin has fallen by more than 20% since then, these investors have continued to buy in large quantities, even during last week's decline. The analyst specifically mentioned:
Many novice investors chose to give up last week, especially those who bought tokens 1 to 3 months ago, but institutional participants launched the largest accumulation process since March.
