As crypto market sentiment turns from bullish to bearish, the whales aren’t rushing to sell their holdings and instead buy even more
Investors usually dread a correction on any financial market as most of them lose their funds and sometimes even face liquidation. But while others count their losses, large players or whales start to accumulate, increasing their positions with discounts.
Bitcoin enters the accumulation phase
IntoTheBlock analysts have highlighted an increase in volumes at addresses that already hold more than 1,000 BTC. High volumes on large Bitcoin addresses are usually related to two things: high spend rates and accumulation.
Since addresses are not losing their worth due to moving funds on exchange addresses, and the number of coins in their wallets are increasing, it could indicate that whales are in fact accumulating rather than capitulating.
In the previous correction, the activity of wallets with more than 1,000 Bitcoins on their addresses increased similarly. Whales tend to intensify during downtrends in the markets. By buying assets at a discount, it allows them to redistribute their holdings with larger profits when the upward movement takes place.
Bitcoin’s market performance
While the buying activity on whale-tier addresses intensifies, Bitcoin is not rushing to recover almost 20% of its value lost previously, and it goes down even further, reaching $40,000.
Previously, due to instability in the mining industry due to political protests in Kazakhstan and the first signs of the Fed’s strengthening of US monetary policy, Bitcoin plunged more than 18% in less than two weeks. The majority of assets in the cryptocurrency market have become oversold, according to technical indicators like the Relative Strength Index.
