Bitcoin’s recent price drop has been scary, hitting lows not seen since before its all-time high of $109,000. But don’t panic just yet! There are some interesting things happening behind the scenes.
Big Investors Are Accumulating Bitcoin
Despite the price dip, some major players are quietly buying up Bitcoin. Santiment, a crypto analytics firm, reports that “whales” and “sharks” (investors holding large amounts of Bitcoin) are significantly increasing their holdings.
This isn’t a random move. These big investors have seen this kind of market downturn before, and their recent buying spree could be a strong indicator of future price increases. Over the past 6 days alone, they’ve purchased roughly 4,846 BTC. This accumulation is happening even as smaller investors are panicking and selling.
Historically, this kind of whale buying has preceded upward price movements in Bitcoin. Santiment is optimistic, predicting that March might end up better than the last couple of months. They say, “Don’t be surprised if the second half of March is much better than the recent bloodbath.” But this positive outlook hinges on these big investors continuing their buying spree.
Smaller Investors Join the Party (Sort Of)
The increased buying isn’t limited to the biggest players. Last week’s brief price jump also saw an increase in smaller investors buying Bitcoin. The number of wallets holding less than 0.1 BTC (often called “shrimps”) increased by about 37,390. While the increase in wallets holding between 0.1 and 100 BTC is also notable, the number of wallets holding over 100 BTC actually decreased slightly. This could be due to market volatility, making it a less clear bullish signal. However, Santiment still sees the overall increase in wallets as a potential sign of a broader market breakout.
The Bottom Line
While Bitcoin’s price is still down, the significant accumulation by whales and sharks, coupled with increased activity from smaller investors, paints a potentially bullish picture. Whether this translates into a sustained price increase remains to be seen, but it’s definitely something to keep an eye on.
