Bitcoin whale transactions reach 4-month peak during crypto market downturn
By:Z, Enzo
Santiment reported that wallets holding between 10 and 1,000 BTC showed a rapid accumulation during Bitcoin’s drop below $50,000 on Crypto Black Monday. The onchain analytics platform revealed this trend in an X post on August 8th, noting that these wallets swiftly increased their holdings as the crypto market experienced a significant rout. On August 5th and 6th, Bitcoin whale transactions reached their highest levels since April, with 28,319 BTC transactions worth over $100,000 and 5,738 transactions exceeding $1 million. This surge in large transactions occurred as crypto prices tumbled, with Bitcoin losing approximately 18% of its value on August 5th, falling from just above $60,000 to below $50,000 in less than 24 hours.
How did Bitcoin whales accumulate almost $23 billion worth of the asset in just 30 days?
On Aug.7, with activity peaking during the market crash, Bitcoin whales had scooped up almost $23 billion worth of the asset over the last 30 days. “It’s clearly accumulation,” remarked Ki Young Ju, founder and CEO of CryptoQuant, noting that over 400,000 BTC had shifted to permanent holder addresses since early July. According to his observations, whales who had held BTC for more than three years sold their stash to new whales between March and June, but he emphasized, “There is no notable selling pressure from old whales currently.” Prior to the significant downturn on Aug. 3, BTCC had reported that whales were already withdrawing Bitcoin from exchanges at a record-high rate in nine years. The report further indicated that Bitcoin whales, possessing at least a thousand coins, had withdrawn the largest amount of BTC from exchanges since 2015. Nevertheless, the situation differs for investors in United States-based spot Bitcoin exchange-traded funds, which experienced collective outflows of $554 million between Aug. 2 and 6, as stated by Farside Investors.
Bitcoin whales had scooped up almost $23 billion worth of the asset over the last 30 days. Market research firm 10x Research noted on Aug. 8 that ‘The absence of ETF buyers during this dip is alarming and raises concerns about the market’s direction,’ highlighting potential shifts in crypto investment trends.
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