Bitcoin whales double down on mammoth BTC purchases despite macro headwinds ⋆ ZyCrypto

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Bitcoin, the largest cryptocurrency by market value, plunged further on Friday as hawkish comments from Fed Chairman Jeremy Powell on Wednesday continued to weigh on investors.

Since hitting an all-time high in November last year, Bitcoin has lost over 75% of its value due to a myriad of factors. Attempts to recover price were thwarted early last month by the unexpected debacle at crypto exchange FTX, sending prices below the psychological support of $18,300, which is increasingly difficult for bulls to breach. .

According to data from IntoTheBlock, only 36% of BTC holders are making a profit at current prices, 14% are at breakeven, and 51% are in the red. Notably, the majority of for-profits are investors who have held coins for more than a year. Additionally, a majority of investors continue to hold a bearish outlook on Bitcoin, which is one of the most common signals of an impending trend change.

Investors harvest more BTC

However, despite the continued decline in crypto prices, the number of Bitcoin investors stacking BTC has recently increased, based on data from Glassnode.

Bitcoin addresses holding between 100 and 10,000 BTC bought $726 million in BTC in the past 9 days, Glassnode wrote on Thursday, adding that an additional 40,747 Bitcoin (worth $726 million) entered collectively in these key whale portfolios during this period. It is important to note that this category represents only 0.0364% of all BTC addresses. However, despite its small size, this group usually makes decisions that lead to future price movements.

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Stablecoins also painted an encouraging picture. Stable assets like USDT, BUSD, and DAI are also bought up quickly. It’s a recipe for good things, the firm added.

The chart above illustrates the percentage of supply held by the top price action addresses for BTC, USDT, USDC, BUSD, and DAI and can be used to reveal the future of crypto prices.

According to the firm, when these lines are mostly falling, it is not a good sign as it suggests that wealthy players and institutional investors are exiting the markets. The graph thus illustrates the increased interest of the most important players to buy the said assets after having reduced their holdings for approximately 14 consecutive months. Although we have yet to see a price reversal, with whales eventually accumulating rather than pouring out, Bitcoin’s ebb tide may be in sight.

At press time, the largest cryptocurrency by market value was trading at $16,829 after falling 3.84% in the past 24 hours, according to data from CoinMarketCap. Earlier yesterday, the price tried to rally higher, climbing as high as $17,486 after bouncing off the weekly support at $17,250 before breaking down.

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