Recently, we can observe considerable fluctuations in the Bitcoin market. During the weekend, its prices dropped by almost $500. Is this the moment when the whales start accumulating Bitcoin?
In short:
Bitcoin’s value is falling
Bitcoin started to decrease in value on Sunday and tested the lowest levels since May 12th. Eventually it started to bounce modestly. Specialists do not rule out the possibility of observing downward trends in the near future, but in the long term we will be able to observe an increase in the value of this cryptocurrency. Along with BTC, altcoins are also losing value. Is this the best time to buy crypto?
The demand for BTC is increasing
Since prices fell, the demand for cryptocurrencies among wealthy investors has increased. Santiment has looked into this and published its findings on Twitter.
1/ Are $BTC whales back to accumulating? 🤔
— Santiment (@santimentfeed) May 26, 2020
Since Bitcoin’s drop below $9,500 on May 20th, addresses holding 100 or more #Bitcoin have added another 12,000 $BTC to their bags — more than $108,000,000 at current prices.
Since the start of the year, these addresses have shown a pic.twitter.com/jWOLuKbnwA
Accumulation is particularly visible for wallet owners whose value exceeds 100 BTC. It is said that whales have recently made purchases worth 12,000 BTC, or about 108 million dollars.
Whales are accumulating assets
For some time, on the basis of available data. the media have been suggesting that the whales on the market have entered the accumulation period. This means that they are buying and accumulating increasing amounts of BTC. It is worth noting that it is additional Bitcoins that are collected by the biggest players, while weaker hands give up their Bitcoins.
Whales are waiting for the bull market?
Smaller investors often analyze what the owners of the biggest wallets are doing, following their decisions may prove to be the right strategy. When they buy cryptocurrencies, it means that they are probably preparing for a bull market. If they behave the other way around, you can expect a downfall. Current whale behavior suggests an upcoming BTC bullish trend.
Will history repeat itself?
As a result of the new trend, the richest players on the market have earned an additional $500 million. The increase came after a previous cautious decline when the price of Bitcoin was rising. The current situation suggests a crypto accumulation, similar to the one that took place in 2016, a year before the 2017 bubble. Will the story go round?
Are we threatened by another bubble?
In Bitcoin, speculative bubbles are a cyclical phenomenon, but the largest one took place in 2017. Bubbles have so far started with a slow upward trend, where halving seems to be a catalyst for this. There are several specialists who are speculating of a scenario in which the situation on black Thursday will be repeated. Many of them, however, speculate that the situation will not return until 20 years from now. It is also worth bearing in mind that at the moment when the first bubble burst many investors were not fully educated about what cryptocurrencies actually are and how they work.
