Bitcoin whales quietly accumulate BTC in anticipation of strong rebound in the asset
- The bullish divergence between whales accumulating Bitcoin as prices decline is typical of a rebound in BTC price.
- Large wallet investors are scooping up more than 1,000 BTC a day, as the largest cryptocurrency bleeds in response to SEC’s clampdown.
- Bitcoin price recovery is likely according to the bullish on-chain metrics.
The US Securities & Exchange Commission’s (SEC) regulatory crackdown on crypto has wiped out over $100 billion from the market cap. While altcoins continue to crumble under the selling pressure from the legal tussle between the regulator and crypto exchanges, Bitcoin whales are scooping up tokens.
Also read: Top 5 cryptos traders are buying after SEC crackdown on $100 billion worth of assets
Bitcoin whales scoop up $25.75 million in BTC a day
Bitcoin network’s large wallet investors are accumulating the asset during the ongoing crypto bloodbath. Based on data from crypto intelligence tracker Santiment, whales are scooping up 1,000 BTC worth $25.75 million a day.
Bitcoin accumulation by whales
As seen in the chart above, large wallet addresses on the Bitcoin network have scooped up 57,578 more BTC as the asset’s price declined 10% between April 9 and June 9. In the same timeframe, whales consistently added more than 1,000 BTC a day to their wallet addresses.
The SEC’s clampdown resulted in a significant decline in the market capitalization of altcoins. Moreover, Bitcoin’s dominance surged from 44.21% to 45.69%, based on CoinGecko data. Both rising BTC dominance and accumulation by whales are bullish for the asset.
The two bullish developments could catalyze a rebound in Bitcoin price. At the time of writing, Bitcoin price is $25,746 and the asset declined 5.2% over the past week. BTC is 62.7% below its all-time high of $69,044.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
