The price of Bitcoin trading below $ 60,000 for over a week has now allowed some whales to accumulate more portions of the asset. Data on the chain suggests long-term holders and whales bought 0.29% of the total supply in just one week.
Bitcoin’s whales are piling up
Since peaking at $ 69,000 on November 10, the price of bitcoin has been falling, losing about 20% of its value and hitting a low below $ 56,000 a week later. While this vigorous drop in prices over a relatively short period of time may shake some weak hands, long-term holders (LTHs) and whales do not.
The latter group, generally considered to be entities containing between 100 and 10,000 BTC, has experienced a buying frenzy, as the analysis company Santiment pointed out. They took the opportunity to buy bitcoin at lower rates (compared to 15 days ago) and accumulated around 59,000 coins in just one week – the same seven-day period in which the price of BTC remained below $ 60,000.
Some of these purchases are most likely from the third largest whale. As previously reported, the anonymous entity purchased around $ 375 million worth of BTC in eleven days.
It should be noted that whales tend to buy more coins when the price of the asset has cooled down after a large rally, as shown in the chart above. This was the case in early July and September, when their holdings had declined. As they started to pile up, the price of BTC also increased.
BTC withdrawals and LTH behavior
As CryptoPotato Recently highlighted, the number of bitcoins withdrawn from trading has started to increase, with more than 23,000 coins being moved to cold wallets. Additionally, long-term holders also refused to panic to sell substantial portions of their BTC positions during the retracement.
Glassnode data showed they reduced their holdings by just 0.7% in a month after peaking at 13.5 million bitcoins.
In contrast, short-term holders reacted more to the increased volatility and sold larger portions of BTC.
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