Whales are buying at the bottom to capitalize on the drop in Bitcoin

• Following the SEC’s lawsuit against Binance, some investors took steps to buy the dip.
• FalconX bought 37 million USDC from Circle, of which 29.5 million was deposited into Binance.
• Since the SEC filed a lawsuit against Binance on Monday, the prices of leading cryptocurrencies have dropped significantly.

In the market that experienced a sharp drop with the news of the Binance and SEC lawsuit, institutional firms and whales began to take advantage of opportunities.

Investors Buy the Dip with Binance & SEC Lawsuit

Following the SEC’s lawsuit against Binance, some investors took steps to buy the dip and even support the crypto exchange giant. According to data, institutional crypto trading platform FalconX bought 37 million USDC from Circle, of which 29.5 million was deposited into Binance.

Since the SEC filed a lawsuit against Binance on Monday, the prices of leading cryptocurrencies have dropped significantly. Bitcoin is trading at $25,780, down more than 3.4% in the last 24 hours, while ETH is trading at $1,819, down 2.4% during the same period. Binance’s BNB has lost 7% in the last 24 hours.

Smart investors saw the dip as a buying opportunity. Data shows that private crypto trading and market-making firm Cumberland withdrew 67.9 million USDC from Circle and deposited 67.1 million into Coinbase.

Whales Buy the Dip

Blockchain investment firm FBG Capital deposited 44 million USDT into Binance after the SEC’s pressure. A crypto whale was identified who withdrew 703,871 USDC and more than 2.5 million USDT from decentralized finance platform Aave and bought $3.35 million worth of Ethereum at an average price of $1,810.

Despite the major turmoil in the industry, the low volatility period of the crypto market was largely unaffected. The prices of leading cryptocurrencies generally fell, but volatility remained low and implied option volatility tightened, reflecting the belief that market volatility would remain low.

Leading crypto figures supported Binance during the SEC lawsuit process. BitMEX co-founder Arthur Hayes presented a positive scenario for the future, stating in a tweet that the market had fallen on “FUD.” Changpeng Zhao previously asked his followers, “Who protects investors better? Binance or the SEC?” Most of his followers chose Binance.

Binance, the world’s largest crypto exchange by trading volume, has been investigated by various regulatory agencies in the US, including the CFTC, SEC, IRS, and even the Department of Justice.