New market data shows that whale addresses are currently accumulating bitcoin during the coin’s sudden correction to little over $30,000.
Bitcoin prices fell more than 23% on Monday following BTC’s surge to an all-time high close to $42,000 over the weekend. However, whale addresses have displayed accumulation behavior, indicating large investors are buying the current dip.
According to data compiled by independent crypto researcher Elias Simos, wallet addresses with more than 1,000 BTC have continued to grow despite the sudden downturn in valuation. Simos concluded that whales were “gobbling” up bitcoin during a panic sell generated by retail investors.
Market data shows whale addresses increasing by 4% since December 2, 2020, with smaller addresses (less than 0.01 BTC) falling by more than 6%.
Simos previously tweeted that bitcoin’s market fundamentals were looking bullish, with active BTC address hitting an all-time high for the first time since early 2017.
As reported, crypto analyst Lark Davis has recently warned bitcoin investors they should avoid becoming “whale food” during the dip, as per his words large investors are shaking the market while shorting it to make a profit.
Once the price of bitcoin drops, he added, the whales buy coins sold by retail investors at a discount and keep accumulating BTC.
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