Cryptocurrency Whales Acquire $227 Million in Bitcoin, Continue to Buy into the Fall
Cryptocurrency whales bought $227 million worth of Bitcoin during the downturn, with major withdrawals coming from Binance as prices fell. Demonstrating strategic positioning in the market for recovery, these large entities moved more than 4,014 BTCs as the price of bitcoin fell 11%. There are signs of a market recovery as bitcoin rises 4% and investors close out their short positions due to economic concerns.
Latest market activity shows cryptocurrency whales aggressively buying BTC, suggesting a possible market recovery. This week, Spot On Chain noted noteworthy transactions, including a substantial withdrawal by a cryptocurrency whale – 36LMb.
At a bitcoin price of $55,114, this investor moved 999,999 BTC, valued at approximately $55.09 million, from Binance.
Cryptocurrency Whales Buy $227 Million Worth of Bitcoin
In the last week alone, over 4,014 BTC worth over 227.7 million dollars have been mined. Several key players were involved in the notable withdrawals from Binance:
- On September 2 and 5, cryptocurrency whale 1KuPi withdrew 1,110 BTC worth $64.8 million.
- Between September 2 and 6, the cryptocurrency whale bc1qg moved 1,381 BTC worth $78.25 million.
- On September 4, 100 BTC worth $5.65 million was withdrawn from a new cryptocurrency wallet – 39xG8.
- Between September 5th and 9th, cryptocurrency whale bc1qd transferred 433 BTC worth $23.93 million.
These moves coincided with an 11% drop in the price of bitcoin over the past week, following a surge in outflows from bitcoin ETFs traded in the United States.
Since their launch earlier this year, this was the longest streak of daily net outflows. In the eight-day period ending September 6, investors pulled approximately $1.2 billion from spot bitcoin ETFs.
Bitcoin bottomed out last week at around $52,550. This created a perfect opportunity for whales to come in and buy. Historically, buying at these bottoms often leads to market rallies.
“We had the biggest spike in negative keywords since the big August collapse last month … it turned out to be the optimal time to buy,” said Brian Quinlivan, senior analyst at Santiment.
At present, the currency has recovered about 4% from last week’s lows and is now trading near $55,000.
Investors Close Their Short Positions
In light of the rally, some investors, including Arthur Hayes, former CEO of BitMEX, have closed their short positions in bitcoin. Hayes made a profit of 3%.
His decision was in response to comments from US Treasury Secretary Janet Yellen, who has been monitoring potential risks in the labor market.
“Bad Girl Yellen is watching; if the markets go lower, she will definitely turn up the music by printing more money,” Hayes commented humorously.
Economic data also weighed on market sentiment. U.S. non-farm payrolls data showed that the economy added only 142,000 jobs in August, below the expected 164,000. As a result of this underperformance, analysts are pricing in a 50 basis point rate cut by the Federal Reserve in September.
“We expect the Fed to cut rates by 50 basis points to stay ahead of the curve, as a 25 basis point cut would be too slow to prevent more significant damage given the lagged effects of monetary policy over several quarters,” said Markus Thielen of 10X Research.
By Leonardo Perez