Buying the dip has almost reached meme-like status, especially when it comes to bitcoin. Bitcoin whales however, have made a very good use of this meme and turned it into massive profits.
A recent study shows that Bitcoin whales were not sleeping during the prolonged bear market. They literally bought the dip. According to the study, some of the largest crypto investors, managed to accumulate over 450 000 BTC over the past 9 months. Most of the bitcoins were acquired at the end of 2018.
Data shows that a over 25% of all bitcoin funds is found inside the bitcoin whale wallets. A “whale wallet” has more than 1000 BTC. This means that each of these wallets is worth more than $8.5 million with today’s bitcoin price.
The last time bitcoin was hovering around $8K was last August last year. Since then, the number of whale wallets has increased by over 26%. All of the data excludes Coinbase addresses. This is due to the fact that the crypto exchange created a large number of these accounts in when it revamped its entire cold storage system.
A more clear meaning of bitcoin whales
With the Coinbase wallets excluded, 9 months have resulted in over 450 000 accumulated bitcoins. It’s completely normal to believe some of these accounts also belong to exchanges, because they do. This is probably why another study shows why over 50% of BTC never really changed hands. These funds are also almost never touched and the name of the game seems to be hodl.
A lot of people are wondering if the price would go over the previous record of $20K and what would happen then. Would the investors finally begin selling or will they wait for even more astronomical highs to make a killing?
This makes determining the liquidity of bitcoin a real challenge. A huge surge will inevitably be followed by a massive sell-off, but the bottom will be very hard to determine. This is why many people have questioned whether or not whales are healthy for the crypto economy.
Yes, there are many crypto whales, but an overwhelming percentage of them holds through thick and thin. Even though many people and/or exchanges had whale accounts in the market highs, the majority of them did not move a single coin.
There are of course the “involuntary hodlers”, who purchased their BTC between $18K and $20K and refuse to sell at a loss. An overwhelming majority of the involuntary hodlers would sell even for a small profit, like history shows. One thing is certain, the bitcoin whales are waiting and they seem to have all the time in the world.
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