A significant Bitcoin whale made a strategic move just hours before a sharp decline in the cryptocurrency’s price, sparking speculation about their market knowledge or potential insider information.
Blockchain analytics firm Lookonchain reported that the whale sold 500 Bitcoin (BTC), valued at approximately $30 million, before the price drop.
While the whale has engaged in three swing trades with Bitcoin, only the first trade resulted in a profit. The remaining two trades ended in losses, totalling over $6 million. Despite these losses, the whale still holds 259.6 Bitcoin, valued at $15.15 million.
Bitcoin is Struggling Above the $58k Mark
Bitcoin is trading at $58,436.69, reflecting a decline of nearly 3% over the last 24 hours. Despite the price drop, trading volume surged by more than 56%, reaching $23.55 billion at the time of writing.
There is still disagreement in the market as a whole. Whales continue to accumulate more of the cryptocurrency even though its price has decreased significantly in the last month.
Santiment, a blockchain analytics company, recently showed a rise in whale wallets, those with 100 or more Bitcoin. The total number of wallets reached a 17-month high in the last 30 days with the addition of 283 new wallets.
This accumulation pattern is noteworthy, particularly given that it is occurring amid price drops and market turmoil. Despite Bitcoin’s dismal short-term performance, their decision to continue accumulating it shows faith in the cryptocurrency’s long-term prospects.
Whale Activity Still Sees A Decline
Santiment earlier also noted a general downward trend in whale activity across the majority of cryptocurrency assets on September 3. They did clarify, though, that this fall does not always portend a market slump or widespread sell-offs.
The company claims that whales typically increase their activity during times of extreme volatility, suggesting that the market may be preparing for more swings in the future.
Whales appear to be playing a different game, continuing to accumulate even when prices are down, while smaller traders and regular investors may be experiencing the effects of Bitcoin’s price decline. This conduct demonstrates the faith some significant holders have in the long-term worth of Bitcoin, even in the face of temporary difficulties
Bitcoin & Ethereum Whale Activity Down By 47% & 72% From March To August