Originally published on: August 08, 2024
Amidst a significant crypto market downturn on August 5 and 6, Bitcoin whale transactions have surged to their highest levels since April, according to on-chain data.
Recent data from Santiment revealed a flurry of activity among wallets holding between 10 and 1,000 Bitcoin as prices plummeted below $50,000. Over the two days in question, there were a total of 28,319 BTC transactions valued at over $100,000 and 5,738 transactions exceeding $1 million.
Following a sharp 18% drop on August 5, Bitcoin rapidly decreased from over $60,000 to under $50,000. However, the cryptocurrency has since rebounded to around $57,000 in the wake of increased buying activity.
According to CryptoQuant founder Ki Young Ju, over 400,000 BTC has been transferred to long-term holder addresses since July, indicating a trend of accumulation among whales. This comes after a period where older whales sold off their holdings to newer investors between March and June.
Interestingly, while whales appear to be accumulating Bitcoin off exchanges at a rapid rate, United States-based spot Bitcoin exchange-traded funds experienced a collective outflow of $554 million between August 2 and 6. This contrast in behavior has prompted market analysts to raise concerns about the market’s overall direction.
As Bitcoin whales continue to dominate the market with their strategic moves, the landscape of cryptocurrency investments remains dynamic and unpredictable. Stay updated on the latest market insights and trends by subscribing to our Markets Outlook newsletter. Gain valuable insights to identify investment opportunities, manage risks, and refine your trading strategies every Monday. Subscribe now to stay ahead of the curve.