- After a 7% to 10% drop in the price of Bitcoin, traders usually become uncertain and quickly fall into the trap of FUD (Fear, Uncertainty, and Doubt).
- Current market conditions indicate that traders are becoming uncertain, as over 100 billion dollars have been wiped off the markets.
- Following the recent drop in Bitcoin prices, a notable increase in the number of assets holding 1,000 BTC or more has been observed.
When the supply data was examined after the sales wave in Bitcoin and cryptocurrencies, an increase in Bitcoin balances was observed!
Bitcoin Whales Benefit from Panic Selling
Cryptocurrency markets have reached a stage where every decline presents a new accumulation opportunity. As has happened before, after a 7% to 10% drop in the price of Bitcoin, traders usually become uncertain and quickly fall into the trap of FUD (Fear, Uncertainty, and Doubt). During such times, the most recent uptrend is often overlooked, and whales take advantage of these situations to profit and prepare for the next price movement.
Current market conditions indicate that traders are becoming uncertain, as over 100 billion dollars have been wiped off the markets. Along with this situation, there has been a significant change in trader sentiments, as Bitcoin is flowing back into exchanges. Data from Santiment shows that BTC supply has increased back to 5.5% of the total supply.
The chart above indicates a slight decrease in balances of USDT, USDC, and ETH, while the balance of BTC has experienced a significant increase. However, in this regard, USDT still holds a leading position, as there is almost 6.9% more USDT on exchanges than six months ago. This has provided whales with an opportunity to accumulate BTC at a discounted price.
Increase in the Number of Whales
Following the recent drop in the price of Bitcoin, there has been a notable increase in the number of assets holding 1,000 BTC or more. This increase indicates that BTC whales are taking advantage of the opportunity to accumulate more before the start of the next bull run.
This could potentially pull the Bitcoin price a bit lower, finding itself in one of the critical support zones between $37,150 and $38,360, as 1.52 million addresses are holding nearly 534,000 BTC. Therefore, if the token cannot hold and maintain these levels, a fresh wave of decline could suppress all bullish possibilities in the crypto space for a while.
