Home
News
- Bitcoin price seems will soon gain back its bullish momentum
- Small traders exit in recent market crash, but whales have gained more from the dip
- Chainalysis claims veteran investors and whales have acquired about 77k BTC through the dip
- BTC could see double pump as the trends showing 2013’s scenario
Bitcoin price has seen significant turbulence in mid-May. The impact of the BTC sell-off affected several other altcoins, and the entire cryptosphere crashed. Mining power’s environmental concern and regulatory scrutiny globally are known as the primary reason behind the market’s crash. At the time, BTC shed by more than 50% from its last all-time high value. Still, few traders are observed seeing the crash as an opportunity to purchase the coin at a lower price.
Whales are cheerful on Bitcoin price performance
In April 2021, BTC achieved a new all-time high near the level of $64k. Over the period of heavy sell-off, Bitcoin plunged by more than 50% from its all-time high. According to the BTC chart shared by CoinMarketCap, Bitcoin had declined under $30k at the time of the crash.
Although the week remained worst for the market, after the crash, prices began to surge back. Many investors incurred heavy losses, but few of the investors seemed confident. Following the scenario, Chainalysis, a blockchain analyst firm, deemed that whales chose to buy the dip and acquired more than $77,000 BTC.
Why do retail investors exit the crypto market?
When the Bitcoin price crash began, several fresh traders started to exit the market in panic. Before the period of sharp sell-off, several institutions and whales had already played the trade game and created bulk gains. However, following the market performance, several are concerned about whether retail investors are trapped or getting an opportunity.
According to a report from Chainalysis, when the Bitcoin was plunging, investors sent BTC at about $3.2 billion worth of loss. Such coins were known to be acquired over the range of four to thirteen weeks.
Instead of showing trust, small and fresh investors began to exit the cryptocurrency markets in panic with bulk losses. However, such traders should know that trading is all about purchasing at lower prices and selling at higher, creating gains. Many experts also deemed that now investors should buy. Still, the retail investors remain skeptical.
BTC believers gained through the dip
Where fresh traders exit, veteran investors and whales remained confident, kept their hands strong, and continued to hold. Moreover, such investors began to add more digital currency to their previous stash.
The recent data from Chainalysis revealed that whales had acquired more77,000 virtual currency over the sell-off period. Notably, the recent purchases of such investors are now worth $3 billion as the prices began to surge again.
However, those who trusted the flagship crypto-asset have set an example to prove the worth of the cryptocurrency.
BTC can see a 2013-style double pump
Glassnode, the on-chain data platform, revealed a spike in the world’s most famous cryptocurrency reserves held in wallets. Meanwhile, it was observed that Bitcoins collecting spree among miners had caused a decline in the asset supply.
Glassnode also estimates that hodlers have realized their gains and losses at some point. According to a Glassnode analyst, the current trend of total unrealized gains or losses held by hodlers tests the 0.75 level, making or breaking the level.
Such metrics observed by Glassnode analysts were only monitored in 2013. Notably, higher prices and supply squeeze from purchasing at lower prices has begun. Hence, the current scenario resembles the double pump scenario of 2013.
US would lead to a giant bullish rally of BTC
The United States, the world’s largest economy, has announced another $6 trillion spending plan for next year. With the increasing spendings by the government, a drastic rise in inflation is expected.
Last year, institutions entered the BTC market and considered it as a store of value and inflationary hedge. According to experts in the cryptosphere, it is noteworthy that the crypto has only 21 million of the total supply. Ultimately, inflation could lead to more adoption of the virtual currency, and the limited supply will take Bitcoin to new highs.
