Whales fill up with Bitcoin as market panics

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Bitcoin has seen several declines in recent weeks that have pushed its price below $ 60,000. The crisis came as a result of massive sell-offs from investors who believe the asset has reached its peak. The panic had spread like wildfire, sparking even more sales, but not everyone gave in.

Whales have always been known to gobble up bitcoins that small investors unload during times of panic and this time around it turned out to be no different. As general market panic sold off their holdings, bitcoin whales took the opportunity to flesh out their holdings, capturing billions of digital assets during the downturn.

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Whales take charge of Bitcoin

Data analytics firm Santiment recently released a report showing whale activity during the recent decline. In the report, the company notes that during the liquidation, the whales had significantly increased their holdings. Those 100-10,000 BTC whale wallets took full advantage of the panic in the market and recovered around 59,000 BTC last week.

🐳 If you waited for the #Bitcoin whales to show signs of accumulating, our data indicates it’s happening again. Over the past week, a total of $ 59,000 BTC has been added to addresses with between $ 100 and $ 10,000 BTC. This represents 0.29% of the total supply. https://t.co/xbZms4GtKm pic.twitter.com/eeRrnrISRM

– Santiment (@santimentfeed) November 25, 2021

BTC collapses to $ 54,000 | Source: BTCUSD on TradingView.com

This figure shows that in just one week, these whale wallets accumulated around $ 3.3 billion in bitcoin, which is an additional 0.29% of the circulating supply now controlled by whales.

It would appear that with each downward correction, small investors lose their grip on the market even more, as the whales remain ready to mop up the coins that investors throw in their panic.

The crypto market plunges into fear

The panic that gripped the market after bitcoin’s downtrend started was evident in the Fear & Greed Index. The index had remained in greedy territory for most of the past month, but recently changed after the first signs of a market correction. Market sentiment had fallen so negative that within a week the index returned to neutral, then feared shortly thereafter.

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The Fear & Greed Index score continued to decline, hitting a new two-month low after falling to 32 on Thursday. This puts the market in a panic which leads to more massive sales in the market. However, the whales took full advantage of it.

Whales accumulating bitcoin, however, have always been good news for the market. Cumulatively, these high volume addresses hold enough to have some leverage in the market. So, as long as they refuse to sell and instead buy more of the asset to increase their holdings, the fewer coins there are on the exchange to cause a continued downtrend.

Featured image from Bitcoin News, chart from TradingView.com

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