Blockchain
Bitcoin Big Whale Increases Its BTC Stake During Market Downturn
The price of Bitcoin has been declining for a few months now, dropping 17%, reaching its lowest level since February 2024. Despite a recent drop in the price of Bitcoin, large-scale investors and sharks are steadily increasing their investments. This trend suggests that these investors are buying the dip.
Big whale accumulates more BTC
According to the blockchain Santiment analytics platformThe number of Bitcoin whale and shark wallets is increasing. These large holders are increasing their holdings, which suggests a strong belief in the long-term potential of Bitcoin.
Throughout July, there was a net increase of 261 wallets containing at least 10 BTC. This increase in large wallets indicates that the big players are accumulate bitcoin even if prices falla move often seen as a sign of confidence in the cryptocurrency’s future growth.
On the flip side of these large holders’ behavior, small traders have been selling off their Bitcoin during this downturn. This sell-off by smaller investors may be driven by fear and uncertainty in the market. However, the accumulation of whales and sharks indicates a mixed sentiment among experienced and larger investors.
Bitcoin Price Trend
As large Bitcoin holders continue to accumulate, some metrics suggest caution for a near-term price surge. Recently, Bitcoin Experimented a 15% decline from a mid-March peak of more than $73,500.
This decline has raised concerns about the sustainability of Bitcoin’s bullish 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 market capitalization from its current market value, indicates potential changes in market dynamics.
RCV is particularly useful for long-term investment strategies such as Dollar Cost Averaging (DCA). Despite the current risk zone, there is still upside potential. RCV readings near 0.70 suggest that higher market valuations for Bitcoin may be on the horizon.
Long-term bullish outlook
The rise in whale and shark wallets should provide comfort to traders concerned about current market conditions. The actions of these large holders suggest a belief in a long-term bullish future for Bitcoin, despite short-term volatility.
Read also: Crypto Market Today: Why Ethereum and Solana Are Must-Buys in This Dip