Whales add 71,000 BTC to their holdings during the dip

Source: Crypto Briefing

Bitcoin whales have added 71,000 BTC worth $3.9 billion to their portfolios during the recent market pullback, according to data from IntoTheBlock. This accumulation occurred as Bitcoin prices fell below $54,000 during the recent market pullback.

Concurrent with whale accumulation, Bitcoin ETFs experienced significant inflows. On Monday, these funds saw $300 million in new investments, marking the highest single-day inflow since early June.

The price decline was influenced by several factors, including the payment of Mt. Gox’s creditors. Notably, approximately a quarter of Mt. Gox’s crypto was transferred to new wallets, causing BTC prices to fall to $53,600. Administrators face an October deadline to complete the distribution process.

Moreover, the German government sold over 80% of its BTC holdings over the last week, adding strength to the sell-off. Despite these pressures, large holders, defined by IntoTheBlock as those possessing over 0.1% of the circulating supply, saw the dip as a buying opportunity.

The market downturn also triggered substantial liquidations in decentralized finance protocols. Aave V3 Ethereum, the largest on-chain lending protocol by total value locked, saw $10 million worth of tokens liquidated, the highest since mid-April.

Despite short-term market turbulence, the actions of whales and institutional investors through ETFs suggest a strong belief in Bitcoin’s long-term potential.

Nevertheless, crypto market prices are likely to stay choppy until the interest rate cut by the Fed, expected to occur in September. Additionally, the overhang supply of Bitcoin that could be possibly dumped is keeping investors at bay, as reported by Crypto Briefing.

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Author: Gino Matos