Bitcoin Whales Add $1.5 Billion to Holdings Amid Price Dip
Large bitcoin (BTC) investors, or “whales” in crypto terminology, appeared unfazed by the recent price drop and significantly expanded their holdings.
According to data from crypto analytics startup IntoTheBlock, addresses with at least 0.1% of the bitcoin supply – worth more than $500 million – expanded their stash by $1.5 billion in the last two weeks of August.
The spike occurred when inflows into centralized exchanges were near zero, implying that “there is organic buying demand rather than just funds moving to exchange addresses,” said to Lucas Outumuro, head of research at IntoTheBlock.
Whales are entities that own a big portion of a digital asset. Their purchases and sales can have a significant impact on markets, thus crypto analysts regularly monitor their behaviour to forecast market moves.
The transactions occurred at a period in which BTC’s price fell to a two-month low, which was momentarily lifted by an important court ruling in Grayscale’s bid to establish a spot bitcoin exchange-traded fund in the United States.
According to IntoTheBlock statistics, large holders first stocked up after Aug. 17, when BTC fell more than 10% to below $26,000, its lowest price since June.
They also raised their stakes earlier this week, following Grayscale Asset Management’s court victory over the Securities and Exchange Commission (SEC). The regulator was directed by a federal appeals court to vacate and reconsider its decision to convert the $14 billion Grayscale Bitcoin Trust into a more desired spot bitcoin ETF.
Analysts regarded the court’s decision as a significant step towards launching the first BTC ETF in the United States, making the largest cryptocurrency more accessible to a new class of investors.
Nonetheless, BTC has lost all of its gains from the brief rise sparked by the Grayscale verdict and fell down below $26,000 on Friday.
Keywords: Bitcoin, bitcoin price, ethereum
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