Bitcoin
Bitcoin Big Whale Increases BTC Holdings Amid Market Crash
Bitcoin’s price has been falling over the past few months, dropping 17% to its lowest level since February 2024. Despite the recent drop in Bitcoin’s price, large-scale investors and bulls are steadily increasing their holdings. This trend suggests that these investors are buying the dip.
Big whale accumulating more BTC
According to blockchain Santiment analytics platformThe number of Bitcoin whale and shark wallets is on the rise. These large holders are increasing their holdings, suggesting a strong belief in Bitcoin’s long-term potential.
Over the course of July, there was a net increase of 261 wallets holding at least 10 BTC. This increase in large wallets indicates that the big players are accumulating Bitcoin even as prices falla move often seen as a sign of confidence in the cryptocurrency’s future growth.
On the other side of these large holders’ behavior, small traders have been selling their Bitcoins during this bear market. This liquidation by smaller investors could be driven by fear and uncertainty in the market. Still, the accumulation of whales and sharks points to a conflicting sentiment between experienced and larger investors.
Bitcoin Price Trend
While large Bitcoin holders continue to accumulate, certain metrics suggest caution for a short-term price increase. Recently, Bitcoin savvy down 15% from its mid-March peak of over $73,500.
This decline has raised concerns about the sustainability of Bitcoin’s upward trend. According to CryptoQuant, Bitcoin has now entered a risk zone based on the 60-day Realized Market Capitalization Variance (RCV). This metric, which tracks the two-month change in Bitcoin’s realized capitalization relative to its current market value, indicates potential shifts in market dynamics.
RCV is particularly useful for long-term investment strategies like Dollar Cost Averaging (DCA). Despite the current risk zone, there is still potential for growth. Readings close to 0.70 on RCV suggest that higher market valuations for Bitcoin may be on the horizon.
Optimistic long-term outlook
The increase in whale and shark wallets should provide comfort to traders worried about the current market conditions. The actions of these large holders suggest a belief in a bullish long-term future for Bitcoin, despite short-term volatility.
Read too: Cryptocurrency Market Today: Why Ethereum and Solana Are Must-Buys This Dip