Bitcoin
Bitcoin Big Whale Increases BTC Holdings Amid Market Crash
Bitcoin has been sinking like a stone, falling 17% to its lowest price since February 2024. But wait! Here’s a curious twist.
Large-scale investors (whales) and sharks are steadily increasing their holdings. This trend suggests that these investors are buying the dip. Do they know something that we don’t?
Read.
Whales demonstrate confidence
According to blockchain analytics platform Santiment, the number of Bitcoin whale and shark wallets is on the rise. These significant holders are accumulating more Bitcoin, demonstrating a strong belief in its long-term potential.
Over the course of July, there was a net increase of 261 wallets holding at least 10 BTC. This increase in large wallets indicates that large players are capitalizing on lower prices, a move often interpreted as a sign of confidence in Bitcoin’s future growth.
Contrary to the behavior of these large holders, small traders have been selling their Bitcoins during this bearish period. This liquidation by smaller investors is likely driven by fear and uncertainty in the market. However, the accumulation of whales and sharks highlights a contrasting sentiment among experienced and larger investors.
Short-term caution versus long-term optimism
While large Bitcoin holders continue to accumulate, some metrics suggest caution regarding a short-term price increase. Recently, Bitcoin suffered a 15% drop from its mid-March peak of over $73,500. This decline has raised concerns about the sustainability of Bitcoin’s upward trend.
According to CryptoQuant, Bitcoin has now entered a risk zone based on the 60-day Realized Market Capitalization Variance (RCV). This metric, which tracks the two-month change in Bitcoin’s realized capitalization relative to its current market value, signals potential shifts in market dynamics.
RCV is particularly useful for long-term investment strategies like Dollar Cost Averaging (DCA). Despite the current risk zone, there is still potential for growth. Readings close to 0.70 on RCV suggest that higher market valuations for Bitcoin may be on the horizon.
Read too: Cryptocurrency Market Today: Why Ethereum and Solana Are Must-Buys This Dip
Despite the short-term volatility, the long-term outlook for Bitcoin seems to be getting brighter by the day. What does your strategy look like?