Whale Accumulation Defies Bitcoin Price Drop: What’s Behind the Trend?
The price of Bitcoin has experienced a ten percent decrease since April 9.
However, an analysis conducted by Santiment indicates that whales, which are individuals or entities holding between 100 and 10,000 BTC, have acquired an additional 57,578 BTC during the same period.
This deviation between the price of Bitcoin and the accumulation of BTC by whales contradicts previously observed trends. Historically, increased accumulation by whales has often aligned with bull markets or followed a period of market decline.
Market analysts closely monitor bitcoin whales and often consider their behavioral patterns when making price predictions. Yet, the current trend of major holders increasing their BTC holdings during a downward price trend does not align with previous patterns. Instead of purchasing during an upward movement, whales have been accumulating since mid-April, when Bitcoin reached its highest price this year.
🐳 As #altcoin madness has ensued, there quietly is a #bullish divergence between #Bitcoin‘s accumulating whales and falling price. With whale holdings moving up by ~1K $BTC per day while prices fall, there is reason to believe a strong rebound can occur. https://t.co/Ol0cK5VhPE pic.twitter.com/FeHPqqJx7o
— Santiment (@santimentfeed) June 11, 2023
The question arises: are these wallets buying at the peak for the first time, or is the current downtrend merely a precursor to an even more significant upswing?
READ MORE: Bitcoin: Millions in Crypto Awaken after a Decade of Dormancy
If the rate of whale accumulation continues to rise, it will impact the demand for BTC, potentially driving the price up.
Moreover, there has been a recent surge in Bitcoin dominance, indicating that the cryptocurrency is a safe haven for investors during market volatility. Bitcoin dominance, which measures the proportion of crypto value held in BTC, currently stands at over 49%, the highest since April 2021.
This increase in dominance is partly attributed to the simultaneous decline in the prices of major altcoins. For example, tokens like Solana and Polygon’s MATIC experienced a sharp drop of over 20% during a crash on a Saturday morning. In contrast, Bitcoin’s price remained relatively stable, providing a refuge from more substantial losses.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
