The big bitcoin (BTC) holders seem to be aggressively buying the dip amid the latest price correction. This development in the market raises some optimism that the coordinated selloff may be about to come to an end.
Some of BTC’s most influential holders were seen to buy the dip in last week’s market meltdown. Based on the data from Glassnode, Morgan Creek Digital’s Anthony Pompliano concluded recently that the so-called Bitcoin whales acquired 122,588 BTC in the height of the market crash on May 19. Whales are the entities that hold between 10,000 and 100,000 BTC.
A lot of the foot traffic to the cryptocurrency exchanges came from the US, as shown by Coinbase’s $3,000 BTC premium at some point. All of the crypto hedge funds interviewed by Bloomberg acknowledged that they were dip buyers. ByteTree Asset Management and MVPQ Capital, both located in London, together with Singapore’s Three Arrows Capital, all acquired the dip.
The co-founder at Three Arrows Capital, Kyle Davies, told Bloomberg:
“People that were borrowing money to invest, they were wiped from the system […] Every time we see massive liquidation is a chance to buy. I wouldn’t be surprised if Bitcoin and Ethereum retrace the entire drop in a week.”
According to previous reports, there was a Bitcoin whale who sold BTC at $58,000 has not only re-accumulated but added to their holdings. This unknown entity sold 3,000 BTC on May 9 before buying back 3,521 BTC in three separate trades on May 15, 18, and 19.
The price of bitcoin dropped below $32,000 on May 23, as the investors and traders continued to test the limits of a new bearish range in the market. The flagship crypto shortly plunged below $30,000 last week, a level that most analysts thought would never be broken into ever again. But on that occasion, the crypto recovered sharply to trade above $37,000.
Nevertheless, overhead resistance has so far limited Bitcoin’s rally, which is yet to break back above $42,000.