Bitcoin fell sharply earlier today and went below $60k after several weeks. There was a short-term panic and sell-off frenzy that liquidated many short positions around the market. While this was happening, it appears like big players have capitalized on the recent decrease in prices and bought big amount of crypto for relatively cheap. One such example is of one of the biggest crypto whale addresses out there who purchased a massive 207 BTC (~$12.8 million) when prices hit $62k.
Various on-chain analysts and crypto journalists have covered the latest buying spree by the big players in the crypto sector. The address in question holds a massive 193,433.46915660 BTC in its coffers and has continued to add more even when prices have posted historic highs. The overall worth of this address now is a whopping $12 billion overall.
According to on-chain analytics firm CryptoQuant:
“This pattern is obvious during the last bull run (2017) when the All Exchanges To Derivative Exchanges indicator peaked many times and the price experienced a jump after each time. Right now, during the Bullrun, the metric has peaked four times indicating whales are buying and hedging their coins continuously.”
This means that there are several cycles that the cryptocurrency is likely to follow before it eventually reaches the peak of the bull run itself. Right now, while some whales have offloaded their crypto into the market, the overall HODLing data is very strong and shows that there is no rush of big players looking to enter exchanges to make a sale. So, much of the BTC being held by whales are being passed around to other big players who still remain bullish around the crypto’s future. This process is called distribution and occurs a lot towards the end of each bull run.
$BTC 62800 indeed played out since then. Wouldn’t want to break it tbh. pic.twitter.com/VS1plF3ytv
— whalemap (@whale_map) November 15, 2021
Whale price action means that the crypto sector is on the move and is witnessing big buying and selling activity. Some short-term whales are the first to offload their crypto at relative highs and they are filtered out at the end of each short-term price pullback. This process carries on and on until the index reaches its highest point and after that, there are no relative highs anymore for a while.
So, as things start to heat up and whales engage with the market, it is a good idea to follow accounts like Whale Alert on Twitter who report big movements of money across several top cryptocurrency and stablecoin networks.
Image Source: pixabay.com
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