- Bitcoin whales accumulated huge sums of BTC as the crypto’s price surged
- On the other hand, overall activity across the Bitcoin ecosystem fell
After Bitcoin [BTC] fell below the $60,000-level, panic was the norm across the market, with FUD settling in too. However, as expected, the cryptocurrency’s whales saw this dip as an opportunity to buy BTC at a discount. And, they did.
Whales get an appetite for BTC
According to recent data, Bitcoin whales accumulated 47,000 BTCs in just 24 hours. Whale accumulation on a large scale usually tends to have positive effects on the price of any cryptocurrency.
Bitcoin was no different, with the crypto hiking by 6.36% over the aforementioned period. At the time of writing, it was trading close to $64,200 on the charts.
Source: X
Now, even though whale interest can help move prices north, there are some drawbacks to whale interest as well. High interest from whales can result in most of the BTC being in the hands of a few. These wallets can then manipulate the crypto’s prices, adversely affecting vulnerable retail investors.
Interestingly, it was seen that it wasn’t just whales that have been accumulating BTC. Instead, addresses holding anywhere between 0.001 to 1 BTC also started to show interest in buying the king coin.
Source: Santiment
Looking at the data
If the sentiment around BTC remains positive for both retail and whale investors, Bitcoin’s price could rally even further. By doing so, it might climb back to $65k again.
Moreover, the velocity around BTC also grew significantly over the last few days. This indicated that the frequency with which BTC was being traded at had grown significantly over the last few days. Moreover, the the total number of addresses holding BTC also grew.
A combination of these factors could prove to be beneficial for BTC’s price trajectory in the long run.
Another factor that could play a part is the state of Bitcoin’s network. Over the last few days, the number of daily active addresses on the network has declined materially. If activity on the network continues to fall, the revenue generated by miners can be affected, causing a surge in selling pressure on the charts.
Source: Santiment
Even in the NFT sector, there seemed to be signs of waning interest. In fact, the volume of NFTs being sold on the Bitcoin network fell significantly.
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Source: Santiment