Bitcoin whales have been hoarding BTC amid the crypto market downturn. According to data from Glassnode, Bitcoin whales (defined as addresses containing more than 1,000 BTC) have added 57,578 BTC to their holdings since May 12, when the price of BTC fell below $30,000. This represents a 4.3% net increase in whale supplies.
The whale buildup is a sign that they believe the current price weakness is a buying opportunity. Whales are typically more sophisticated investors than retail investors and often have access to inside information. As such, its accumulation is often seen as a bullish sign.
The overall crypto market has been on a downward trend since November 2021. However, there are some signs that the market may be bottoming out. The BTC price has been hovering above $20,000 for several weeks and there has been an increase in institutional investment in the space.
If the market bottoms, the accumulation of whales could help drive the price of BTC higher in the future.
Here are some of the reasons why Bitcoin whales are hoarding BTC:
They believe that the current price weakness is a buying opportunity: The BTC price has fallen more than 70% from its all-time high of $68,789. This has created a buying opportunity for whales, who believe that the price will eventually recover.
They are attracted to the long-term potential of Bitcoin: Bitcoin is a scarce asset with a limited supply. This makes it a good store of value and has the potential to increase in value in the long run.
They are looking for diversification: Whales typically have a diversified portfolio of assets, including Bitcoin. This helps reduce your risk and protect your wealth.
The accumulation of Bitcoin whales is a positive sign for the future of the cryptocurrency. It shows that there is strong demand for Bitcoin from sophisticated investors. This demand could help increase the price of BTC in the future.