Bitcoin is still recovering from a historic crash, but some investors have taken advantage of the situation. The mystery whale reportedly acquired 3,521 BTC in three separate deals on May 15, 18 and 19. The purchases were made at a lower price amid falling market.
It is noteworthy that on May 9, the same whale sold 3,000 BTC at an average price of $ 58,503. Thus, having made a profit, and then acquired the asset again. Therefore, it can be concluded that whales continue to accumulate Bitcoins. This trend indicates that confidence in the cryptocurrency is strengthening, despite the fact that the price is currently volatile.
Large investment funds also started buying Bitcoin after falling below $ 35,000.
Thus, the fall in price brought many earning opportunities for those who had free capital.
Large BTC holders have the ability to influence the rate by buying and selling large amounts of their assets. Whales can take profits on their positions, especially if the futures market is very crowded. Whales selling their assets to balance their portfolios can cause price swings in the market, especially when accompanied by cascading liquidations.
Network data shows that whales are buying Bitcoin rather than selling it, probably in anticipation of more upside potential in the future.
Bitcoin is becoming very attractive in an environment where the constant expansion of the money supply by central banks is forcing some companies to look for alternatives to cash. In addition, analysts point out that accumulation addresses are increasing, indicating a new wave of accumulation.
Experts believe that Bitcoin still has many opportunities. They note that Bitcoin is far from reaching its potential peak.
What do traders expect from Bitcoin in the near future?
Traders’ short-term expectations remain mixed, with some believing that BTC could drop if it fails to hold above $ 40,000. At the same time, other traders believe that if Bitcoin does manage to break through the resistance level, there will be a breakout to new heights next week.
However, the increased volatility hasn’t stopped Bitcoin whales from accumulating more coins.
Large market players try not to waste time, even if the price falls, they accumulate Bitcoins before the next bull run. In other words, whales skillfully use the panic and depression of ordinary investors to accumulate more digital assets. The accumulation of BTC by “whales” speaks of their confidence in the further appreciation of the coin, despite the uncertainty in the market.
This trend implies that, despite the uncertain market environment, whales are confident that now is the right time to accumulate BTC. Presumably, they believe that continued growth is possible.
A similar dynamic can be seen among Bitcoin Cash holders.
In the long term, experts believe that Bitcoin will absorb most of the world’s capital over time. Because people understand that this is the most effective way to create wealth over and over again, above their value.