A report by Chainanalysis shows that whales acquired $3 billion worth of Bitcoin last week. According to Chainanalysis chief economist Philip Gradwell whales purchased a total of 77,000 Bitcoins within the week, at a time when Bitcoin saw a huge decline. The king coin fell from $49,000 to a low of $30,000. During the plunge, $3.3 million was liquidated within an hour.
On the other hand, some traders, asset managers, and hedge funds decided to buy the dip when Bitcoin traded around $30,000. “Buying the dip” is used to describe purchasing Bitcoin when prices have dipped in anticipation of profits when the price rises again.
Gradwell added that the price drop led to the loss of some Bitcoins being moved on-chain. He added that 1.2 million Bitcoins were moved at a loss of 5-25%. He also said that 120,000 Bitcoins were sent at a minimum of 25% loss. Gradwell continued:
“However, this was a smaller number of bitcoin sent at [a] loss than in the late 2017 and mid-March 2020 price crashes, suggesting that last week was not the worst capitulation of holders in bitcoin’s history.”
Despite not being the “worst capitulation of holders” in history, this past week appeared to be the worst week ever for Bitcoin investors.
Now, Bitcoin and altcoins are recovering from last week’s lows. After reaching a low $29,925, BTC now trades at $40,128. The cryptocurrency has also gained more than 2% in the last 24 hours.
Image Credits: Pixabay
