TL;DR;
- The entire cryptocurrency market experienced sharp declines before prices recovered, with BTC jumping above $100,000 once again.
- On-chain data shows that whales holding some of the biggest and most popular crypto assets used this opportunity to stack up.
BTC Whales Buying
Recall the price events that transpired since the start of the week. Bitcoin tried its hand at taking down $100,000 on a couple of occasions during the weekend, but each was met with a severe correction that pushed it south hard. In fact, the largest cryptocurrency dumped by over six grand twice and slipped to $94,400 on Monday and Tuesday, where it actually found the necessary support.
It bounced off yesterday in a quite impressive fashion, gaining almost eight grand in less than a day from its aforementioned bottom to $102,000 (local peak on Bitstamp).
These violent price swings liquidated over 500,000 over-leveraged traders at one point and they usually tend to push the so-called ‘weak hands’ out of the market. However, those with stronger convictions, usually larger investors, use these corrections to accumulate more of the asset.
This was the BTC case, according to on-chain data shared by popular analyst Ali, who noted that 342 big wallets (containing at least 100 bitcoins) were created during this retracement.
#Bitcoin whales are buying every dip! In fact, 342 wallets with over 100 $BTC were created as prices dropped from $104,000 to $90,000. pic.twitter.com/cMJRnshOAt
— Ali (@ali_charts) December 11, 2024
Lookonchain said that even when BTC spiked above $100,000 once again, whales continued to accumulate, with a single one buying 201 BTC at such high prices.
XRP and DOGE, Too
But it’s not just bitcoin. It seems wealthy investors are highly bullish on other cryptocurrencies as well, such as Dogecoin (DOGE) and Ripple (XRP).
Further data shows that whales bought over 100 million XRP during the asset’s crash, from over $2.4 to under $2. It was one of the poorest performers at one point during the market-wide corrections, but it managed to erase all losses and is back above $2.4 as of now.
In the recent dip, whales bought over 100 million $XRP! pic.twitter.com/xU2YscIkvj
— Ali (@ali_charts) December 11, 2024
Being the largest and oldest rep of the ever-volatile meme coin sector, DOGE was not spared from the volatility either. Its price slumped from $0.44 to under $0.37 before it bounced back to well above $0.4. During this crisis, DOGE whales accumulated 210 million of the asset.
#Dogecoin whales bought 210 million $DOGE during the recent price correction! pic.twitter.com/0vG2iN1fvJ
— Ali (@ali_charts) December 11, 2024
Conclusion
As the cryptocurrency market continues to experience volatility, it is clear that whales are taking advantage of the dip to accumulate more assets. With the price of bitcoin and other cryptocurrencies bouncing back, it is likely that this trend will continue in the coming days and weeks.
FAQs
Q: What is the significance of whales buying into the cryptocurrency market?
A: Whales buying into the cryptocurrency market can indicate a strong bullish sentiment and a potential increase in price.
Q: What is the definition of a whale in the cryptocurrency market?
A: A whale is typically an investor or entity that holds a large amount of a particular cryptocurrency, often with a value of over 100 coins.
Q: How does the buying behavior of whales affect the cryptocurrency market?
A: The buying behavior of whales can have a significant impact on the cryptocurrency market, as it can drive up prices and increase liquidity.
