Bitcoin Whales Are Filling Their Bags Despite Warnings BTC Price Could Nosedive To $20,000

Bitcoin's (BTC) drop below the symbolic $30,000 mark coupled with the collapse of stablecoins has heightened fear in crypto markets this week. As several investors liquidate their holdings in response to fears of BTC likely falling towards $20,000, network whales are adopting another strategy. The latter take advantage of the situation to collect more BTC.

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Highest number of transactions over $100,000 since January

Analyzing the level of activity on the Bitcoin network this week, Santiment noticed that whales have become very active since bitcoin fell below $30,000. “  There is clear evidence that Bitcoin whale addresses view BTC's fall below $30,000 as a buying opportunity. We have seen the highest number of transactions exceeding $100,000 since January and their pool of bitcoin holdings is on the rise  ,” the blockchain analytics platform said.

She had already reported in a previous tweet that the amount of bitcoins moving daily between addresses exceeded the 300,000 BTC mark during the week. “  We haven't seen this level of activity on the BTC network since February. The bulls and bears are the most polarized we've seen in quite a while  ,” Santiment wrote. This level of activity on the Bitcoin network was also seen on Ethereum, with transactions exceeding $1 million in a single day , the highest level since January.

A risk of collapse similar to that of 2018

However, analytics firm CryptoQuant has shared a chart showing that the ratio of Bitcoin whales at exchanges has risen to its highest level in 4.5 years. This ratio notably represents the relative size of the 10 main entry transactions in relation to the total entries.

In a bull market, it often stays below 85%, while in a bear market, it is above 85%. Therefore, CryptoQuant warned bitcoin holders of an imminent drop in the price of bitcoin if this ratio continues to rise. The company recalled that such a scenario had already happened in the past, notably during the market crash in 2018.

With bitcoin (BTC) having already lost more than 50% of its value compared to its last all-time high, this period is naturally equivalent to that of the balances for the whales of the network. However, this buying strategy may seem surprising when you consider that the percentage of Bitcoin addresses in profits is at its lowest level in two years .

Source: ZyCrypto