2021-1-22 18:48 |
The red week got even redder as we move into the weekend. The price of the digital asset dropped under $29,000 on Thursday night.
From January 8, 2021, when we hit an all-time high of $42,000, Bitcoin has recorded a pullback of about 31%. This may feel like the start of another bear market, or as Scott Minerd of Guggenheim Investment said, the way back to $20,000, this correction is not even up to the standard that we saw during the last bull run.
An average of 30% pullbacks has been the norm during the bull rally of 2017, which at times, even went to 40%. The first one was rather brutal that took four weeks, and as a trader and popular crypto personality, CryptoCobain says, “almost convinced me we were dead.”
But while people are panic selling their BTC as the price drops for several reasons, technical, bullish exhaustion, Mierd’s call for taking profit off the table, Tether FUD, Treasury Secretary-nominee Janet Yellen sharing concerns about cryptos’ use in illegal activities, or the latest double-spend misunderstanding, the strong hands and institutions are buying these dips.
As can be seen in the number of addresses holding 1,000 BTC, 141 new whale addresses were created in January alone. These whale addresses holding over 1k BTC have reached a new all-time high of 2,446.
“Suddenly there's a whole bunch of newly minted whales…. holders of 1000BTC / $32m of BTC,” noted on-chain analyst Willy Woo. “I'm seeing more whales coming in on this dip.”
Source: Glassnode
These whales are buying the dips and moving their coins off the exchanges for self custody in the hope of higher Bitcoin prices in the future.
Typically, exchanges see investors’ moving coins on the exchange as a precursor to selling, which means, “this is some just some healthy profit-taking and some consolidation,” noted Tom Jessop of Fidelity as well.
“Coins are moving off the market to very strong holders, the ones that keep accumulating without selling,” adds Woo.
Interestingly, in the last nine days, Grayscale has purchased 36,000 BTC, while a mere 8,100 BTC were mined during the same period. Amidst the price of Bitcoin remaining range-bound, the premium on GBTC has also fallen drastically to 2.77%.
Bitcoin/USD BTCUSD 32,536.5399 $1,301.46 4.00% Volume 80.19 b Change $1,301.46 Open$32,536.5399 Circulating 18.61 m Market Cap 605.42 b baseUrl = "https://widgets.cryptocompare.com/"; var scripts = document.getElementsByTagName("script"); var embedder = scripts[scripts.length - 1]; var cccTheme = {"Chart": {"fillColor": "rgba(248,155,35,0.2)", "borderColor": "#F89B23"}}; (function () { var appName = encodeURIComponent(window.location.hostname); if (appName == "") { appName = "local"; } var s = document.createElement("script"); s.type = "text/javascript"; s.async = true; var theUrl = baseUrl + 'serve/v1/coin/chart?fsym=BTC&tsym=USD'; s.src = theUrl + (theUrl.indexOf("?") >= 0 ? "&" : "?") + "app=" + appName; embedder.parentNode.appendChild(s); })(); var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~BTC~USD"); The post While You Are Selling Your Bitcoin; Institutions Are Buying the Dip Aggressively first appeared on BitcoinExchangeGuide.Similar to Notcoin - TapSwap on Solana Airdrops In 2024
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