- During an eventful week for cryptocurrency enthusiasts, the price of Bitcoin (BTC) experienced significant turbulence and dropped to a low level of $25,400 at one point.
- Recent reports of Elon Musk’s SpaceX selling a portion of its Bitcoin assets have added to the problems of the cryptocurrency.
- BTC temporarily rose to $26,800 on August 23, which was due to a resurgence in activity from crypto whale and shark addresses.
Bitcoin price touched $26,800 with a rapid recovery on Wednesday; Which way are investors leaning?
Bitcoin Whales Accumulating Again
During an eventful week for cryptocurrency enthusiasts, the price of Bitcoin (BTC) experienced significant turbulence and dropped to a low level of $25,400 at one point. This sharp decline can be attributed to a combination of various factors.
Decreased market activity, combined with increased turmoil in China’s real estate sector, created downward pressure. Additionally, recent reports of Elon Musk’s SpaceX selling a portion of its Bitcoin assets have added to the problems of the cryptocurrency.
Nevertheless, optimism returned to the crypto market when high net worth investors began accumulating the first cryptocurrency again in the past 24 hours. Specifically, BTC temporarily rose to $26,800 on August 23, which was due to a resurgence in activity from crypto whale and shark addresses – individuals or organizations holding large amounts of cryptocurrency can significantly influence market trends.
According to crypto analytics platform Santiment, “there are currently 156,660 wallets holding between 10 and 10,000 BTC, and they have accumulated $308.6 million since August 17.”
These investors have added a total of 11,629 BTC in the past 6 days, Santiment highlighted.
What is the current state of Bitcoin price?
As of August 24, BTC is trading at $26,447 with a 1.78% increase during the day. The largest cryptocurrency slightly retraced after briefly touching the $26,800 level during this period.
Last week, BTC experienced a loss of over 7% and over 9.7% on a monthly basis, resulting in a market value loss of over $50 billion within this 30-day period. However, Bitcoin is still in the green zone when looked at from the beginning of the year, having increased by approximately 60%.
The largest crypto investors welcomed the recent drop in Bitcoin with purchases, but the same cannot be said for the overall crypto landscape.
In particular, the frequency of the phrase “buy the dip” on social media, which involves buying low-value assets, decreased as crypto prices continued to fall and trading activity remained subdued. Santiment stated the following about the matter;
“We have seen a significant increase in the phrase ‘buy the dip’ on social media. This indicates that traders have a high level of optimism that the market will quickly recover, but it also shows how significantly this optimistic sentiment has decreased in the past few days.”
The company collected this insight from platforms such as Reddit, X, Telegram, and 4Chan. The decrease in wishes indicated a resurgence of pessimism as market values declined.
