Amid Market Plunge, Bitcoin Whales Snatch Up $553M BTC: Is a Rebound Brewing?

With Bitcoin’s average valuation at $41,000, the ‘Bitcoin whales’ used the recent 9% nosedive to increase their holdings by a whopping $533 million.

Bitcoin

The price of Bitcoin (CRYPTO:BTC) experienced a downturn on Dec. 11, reacting to the underwhelming inflation statistics from November’s US CPI report. Despite this, major institutional investors appeared to be undeterred according to on-chain data patterns.

Recent data from IntoTheBlock reveals a considerable surge in BTC Large holder net-flow during last week’s Bitcoin price dip.

From December 10th to December 13th, BTC whales increased their holdings by a total of 13,010 BTC. Data shows that these big players began their purchasing spree just as the price of BTC started to fall on Monday, Dec. 9.

With Bitcoin’s average valuation at $41,000, the ‘Bitcoin whales’ strategically utilized the recent price drop to increase their holdings by a whopping $533 million. This kind of aggressive purchasing activity among corporations and affluent investors often instigates a rise in a cryptocurrency’s value for several reasons.

Primarily, when these ‘crypto whales’ acquire substantial amounts of coins in a brief timeframe, as seen recently, it absorbs any surplus supply in the market. It also infuses much-needed liquidity, facilitating those who may be looking to sell in panic, to carry out trades at more attractive prices.

More crucially, it inspires other participants in the ecosystem to adopt a more optimistic trajectory. All these elements could potentially shift the BTC momentum towards the bulls and precipitate an early price recovery in the coming days.

However, past trading trends suggest that the mid-$43K level might pose a significant barrier to Bitcoin’s next price surge, particularly when attempting to reach yearly highs of $44,700 printed on Dec. 8.

If this situation unfolds, there’s a chance that the downward trend could persist until BTC hits the $32k – $33k range. Upon reaching this level, it’s probable that Bitcoin will take a turn and commence an upward correction, first regaining the $50,000 mark, followed by the $52,000 level.

Price Action

According to recent updates, BTC has experienced a rise of 5.36% within the day and is currently oscillating just above the $43.000 level.

Disclaimer: The content provided in this article is intended for informational purposes only and should not be misconstrued as financial advice. It is crucial to conduct your own research, consult with a licensed financial professional, and make informed decisions based on your unique circumstances. 

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About Ari Haruni 143 Articles
Ari Haruni is the Co-Founder & CEO of Wall Street Pit.

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