- Last week’s dramatic collapse caused a significant drop in the price of Bitcoin, instantly wiping out billions of dollars in market value.
- Although prices dropped to $26.4 thousand at the time of writing, the short-term rally that followed almost a week of darkness brought joy and hope to market participants.
- Individual investors also seem to have their eyes on Bitcoin’s bullish potential. According to Glassnode’s latest update, wallets holding more than 0.01 coins set a new all-time record.
Bitcoin whales have started accumulating, but retail investors are not left behind and are taking action for BTC; the HODL trend continues!
Is the Dramatic Drop in Bitcoin Coming to an End?
Last week’s dramatic collapse caused a significant drop in the price of Bitcoin, instantly wiping out billions of dollars in market value. Since then, according to BTC data, it has been fluctuating within a range without touching the $26,000 level.
However, as a quick turnaround, Bitcoin rose to $26.8 thousand during the trading hours on August 23. Furthermore, the token’s trading volume in the last 24 hours increased by 8.27%. An increase in price accompanied by an increasing trading volume generally indicates the presence of buying pressure and is also a bullish indicator for short and medium-term investments.
Although prices dropped to $26.4 thousand at the time of writing, the short-term rally that followed almost a week of darkness brought joy and hope to market participants. The appetite of Bitcoin’s major investors was once again impressively demonstrated as this influential cohort quietly continued to add to their existing positions.
According to popular on-chain analysis firm Santiment, addresses holding between 10 and 10,000 BTC have added 11,629 tokens to their current supply since the collapse on August 17. At the current market price, this amount reaches $307 million.
As known, whales or smart money investors use the period of inactivity to strategically enter the accumulation mode. The “Buy the Dip” strategy, which essentially involves adding to the current long position of a strong asset, is frequently used by experienced Bitcoin owners.
Looking at the number of whale transactions, it can be seen that major investors have been active since the beginning of the week. After falling last weekend, transactions worth over $1 million increased to around 1330 on a daily basis.
Small investors are not left behind
The interest shown by Bitcoin whales was too significant to be overlooked, but small investors in the cryptocurrency also told an impressive story. This group, often referred to as non-professional investors, trades in smaller amounts and is considered to lack knowledge and research about investments.
However, these individual investors also seem to have their eyes on Bitcoin’s bullish potential. According to Glassnode’s latest update, wallets holding more than 0.01 coins set a new all-time record.
In fact, the number of this cohort has steadily increased for a long time and has survived a possible bear market period.
It is critical to attract the attention of the general public for an asset to become widely accepted and recognized. Therefore, the increase in retail adoption seemed like a promising signal for Bitcoin.
HODLing (Long-Term Holding) has become the norm
Recently, long-term holders (LTH) of the coin have continued to aggressively add to their stacks. At the time of writing, they held nearly 75% of the total circulating supply. The accumulation is based on the increasing popularity of Bitcoin as a safe haven asset.
After surviving the US banking crisis without much damage, upcoming bullish events such as the halving and spot ETF approval that did not attract the attention of US regulators convinced investors that “digital gold” was not just an illusion.
