Bitcoin whales have accumulated over 12,000 BTC, or over $106 million worth of the cryptocurrency, since its price dropped below $9,500 on May 20, according to data from crypto analytics platform Santiment.
According to Santiment addresses with over 100 bitcoin in them – considered BTC whales because of their significant holdings – have been buying the dip over the last few days. Throughout the year, they’ve shown a “propensity to accumulate into dips and offload their bags slightly before short-term tops occur.”
2/ propensity to accumulate into dips and offload their bags slightly before short-term tops occur. Will this history repeat itself?
Check out more $BTC whale metrics on the most comprehensive on-chain and social metrics #crypto platform for FREE! https://t.co/b87hnzT6aV
— Santiment (@santimentfeed) May 26, 2020
Cryptocurrency market participants observe the movements of whales because their significant holdings could easily influence the market’s directions. If most bitcoin whales start accumulating a short-term rise is to be expected. On the other hand, if whales move their funds to exchanges a price drop is to be expected.
Back in March, Santiment found that the top 100 holders of Ethereum, the second-largest cryptocurrency by market capitalization, were accumulating amid an ongoing consolidation, which according to the firm showed those who have a larger stake in ETH were starting to have a “collective sentiment of the token being undervalued.”
Bitcoin whales were also accumulating funds ahead of the cryptocurrency’s halving event, which according to some signalled a sell-off was expected after the event. CryptoCompare data shows the price of bitcoin did not drop immediately after the halving. It traded over the $9,000 for days after the event, but has since dropped below that mark.
Featured image via Pixabay.