Key Points
- Bitcoin whale transactions hit their peak since early April during the recent market dip.
- Long-term Bitcoin holder addresses have increased their holdings by 404,000 BTC, equivalent to over $23 billion, in the past month.
The recent decrease in Bitcoin’s value below the $50,000 mark on August 5 and 6 caused widespread concern. However, experienced market participants viewed this as an opportunity. Onchain data reveals that Bitcoin whale transactions soared to their highest levels since early April during this time.
According to a recent post by Santiment, wallets with holdings between 10 and 1,000 BTC experienced rapid accumulation when the price dropped to as low as $48,800.
Bitcoin Accumulation and Transaction Data
Santiment also disclosed that during this downtrend, Bitcoin saw 5,738 transactions exceeding $1 million and 28,319 transactions over $100,000.
The trend of accumulating Bitcoin was not just a few days’ phenomenon. Over the past month, addresses of long-term Bitcoin holders have increased their holdings by 404,000 BTC, equivalent to over $23 billion. This sum includes 40,000 BTC accumulated via spot Bitcoin ETFs. However, it’s worth noting that the ETF accumulation did not occur during the recent dip, as these investment funds experienced an aggregate outflow of $554 million between August 2 and 6.
CryptoQuant CEO Ki Young Ju interprets these figures as a clear indication of significant accumulation during this prolonged correction period of over a month. Furthermore, there is no significant selling pressure from older Bitcoin whales, those who have held BTC for over three years, as they sold their holdings to new whales between March and June.
Bitcoin Supply and Future Predictions
CryptoQuant data suggests that the Bitcoin supply on centralized exchange platforms is at a multi-year low. Whales with over 1,000 BTC have been withdrawing their assets from exchanges at the highest rate since 2015. This shift towards self-custody indicates a low intention to sell, suggesting that more long-term investors are interested in Bitcoin.
Since the recent significant downturn, Bitcoin has stabilized within the $55,000 to $57,000 range. Additionally, its market capitalization has rebounded, climbing from $951 billion on August 5 to $1.12 trillion today. The US spot ETFs also broke the three-day outflow streak by recording an inflow of $45.14 million on August 7.
Despite this recovery, BitMEX co-founder Arthur Hayes predicts that the cryptocurrency market will experience another wave of downfall in the coming days. Additionally, Wednesday’s Ethereum sell-off by Jump Trading could potentially result in higher selling pressure.
“The absence of [ETF] buyers during this dip and the persistent liquidation pressure from various players remain a significant concern,” reads a statement by Market research firm 10x Research.
