Bitcoin prices have fallen to below $60,000. There has been multiple falls in Bitcoin over the past week. This slump was caused by sell-offs of investors who believed that bitcoin had reached its peak. The panic had spread fast, prompting more sell-offs. But not all investors gave up.
Small-time investors who have unloaded bitcoins during panic periods are known to swallow them up. This time, it is no exception. While larger market panic sellers sold their stocks, bitcoin whales took full advantage of this opportunity to boost their stock, buying billions of digital assets in the downturn.
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Whales Love Bitcoin
Santiment Data Analytics recently released a reportShowing whale activity in the latest dip. According to the report, it was noted that the sale-off had been taking place while whales increased their holdings. Whale wallets that contained 100-10,000 BTC were used to take advantage of panic on the market, and they managed to pick up 59,000 BTC in just one week.
?You’ve been patiently waiting! #BitcoinWhales begin to accumulate, and our data confirms that it is again. A total of 59k whales have been observed in the last week. $BTCAdditions made to addresses holding between 100-10k $BTC. It is 0.29 percent of total supply. https://t.co/xbZms4GtKm pic.twitter.com/eeRrnrISRM
— Santiment (@santimentfeed) November 25, 2021
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
These figures show that the whales’ bitcoin wallets have amassed approximately $3.3 billion in Bitcoin within a week, or 0.29% more of the total circulating bitcoin supply.
As it seems, with each downturn, investors of small size lose more control over the market. Whales are always ready to grab the panicked investors’ coins.
Crypto Market Sinks Into Fear
The panic that gripped the market after bitcoin began its downtrend was evident in the Fear & Greed Index. Although the index was in greed territory most of the month, it began to change after signs of market corrections. The market sentiment was so low that it fell into negativity, and the index returned to neutral in less than a week. Fear followed shortly thereafter.
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The Fear & Greed Index score continued to drop, hitting a new two-month low after dropping to 32 on Thursday. The market is now in panic mode, leading to further sell-offs. Whales, however, have used this to their advantage.
The market has always been good news when whales accumulate bitcoin. These high volume addresses have enough power to hold a certain amount of market influence. As long as these high-volume addresses refuse to sell, and instead buy more assets to grow their holdings of that asset, the market will continue to fall.
Featured image taken from Bitcoin News. Chart by TradingView.com
