Despite the fall in the main cryptocurrency BTC over the past month, large holders continue to purchase digital coins.
On April 14, the first cryptocurrency updated its maximum value. Its price on the Binance crypto exchange reached $ 64.9 thousand. But after that, the quotes went down and on May 19 they reached their lowest level since the beginning of March – $ 30 thousand.
Despite this, the large Bitcoin holders, the so-called “whales”, continue to accumulate digital coins. This is indicated by the data of the analytical platform Santiment. According to this, after reaching the mark of $ 64.9 thousand, BTC addresses containing more than 10 thousand digital coins continued to accumulate digital coins. In total, in two weeks they increased their assets by 90 thousand BTC.
BTC price support
“Whales” generally enter the market on a large scale during deep corrections and partially unload as the price rises.
According to experts, active purchases of large investors are quite natural, given the recent correction. Moreover, almost none of the “whales” (apart from Tesla) have yet to take profits.
It is these institutions that provide the most support for the price and prevent BTC from moving to a larger-scale correction.
Profit for any outcome
Whales aren’t prone to emotional and spontaneous decisions. None of them invests all their funds in cryptocurrencies, they use digital assets for diversification. Large cryptocurrency holders are simultaneously investing in BTC and insuring against falling risks using BTC futures on the Chicago Mercantile Exchange by placing short positions. Therefore, they win in any state of affairs. So they very rarely exit the asset in the event of a decrease in its value.
Whales think strategically and can even influence the market in order to create panic and benefit from a decline in prices.
What an investor should do?
Novice investors shouldn’t be guided by bulk purchases of “whales”. As they can often coordinate their deals or inform the circle of the elite about them and potentially crash or lift the market. Now there are no laws on cryptocurrency manipulation yet. So, assets are very volatile and speculative, and such stories are not uncommon.
A retail investor should consider various factors. Whale activity may be only one of them, not necessarily the most significant.
Retail investors don’t have the portfolio and risk management capabilities of the whales. At the same time, the actions of the “whales” must be kept in mind in order to roughly understand the long-term prospects of the crypto market.
Any new BTC rollback will be supported by “whales”
At the moment, the whales have strengthened their purchases of BTC and prevented it from falling below $ 30,000. The fact that after the collapse of the main cryptocurrency, it returned to the level of $ 40 thousand, speaks of the recognition of Bitcoin as a viable alternative investment in a diversified portfolio.
It is worth noting that the growth in the number of large BTC addresses continued even as the value of the coin fell by 20%, according to the Glassnode report. Analysts have concluded that any new rollback will be supported by “whales”. Who seek to buy cryptocurrency on acceptable terms for themselves. The number of large BTC addresses has grown by 25% over the past year.