Despite growing calls for Bitcoin to fall below $50,000, large investors, commonly referred to as “whales,” continue to accumulate the cryptocurrency. This confidence comes ahead of the highly anticipated US jobs data release, expected to impact the market soon.
Bitcoin Whales Take Advantage of Price Dips
Recent data from Spot On Chain shows that a prominent Bitcoin whale has withdrawn 1,145 BTC, valued at $65.1 million, from the Binance exchange over the past four days. This whale has taken advantage of price dips, making seven separate purchases at an average price of $56,841 per Bitcoin. This accumulation highlights a strategic move by whales to buy the dip, contrary to the trend seen among smaller traders.
Crypto analytics platform Santiment reports that Bitcoin whales have collectively amassed over $7.8 billion worth of Bitcoin in the last month, even as its price dropped below $50,000 in early August. These whales, holding between 10 and 10,000 BTC, added 133,300 coins to their wallets during this period, while smaller traders offloaded their holdings in fear of further decline.
US Jobs Data and Market Implications
The upcoming release of the US Nonfarm Payroll (NFP) data is being closely monitored by the market, as it will likely influence the Federal Reserve’s decision on interest rates. A dip in employment numbers to 2021 lows has fueled speculation of a potential rate cut, though concerns about a looming US recession remain.
The uncertainty around US economic performance hasn’t deterred Bitcoin whales from continuing their buying spree. In fact, alongside these whales, Bitcoin miners have also been holding onto their BTC reserves. Riot Platforms, one of the leading Bitcoin mining firms, recently hit a milestone, with over 10,000 bitcoins in its possession.
Sub-$50K Bitcoin Predictions Persist
While whales are banking on the long-term value of Bitcoin, many analysts are expecting further corrections in the near term. Currently, Bitcoin is trading around $56,700, but some experts predict an additional 12-15% drop. BitMEX CEO Arthur Hayes, for instance, has predicted Bitcoin’s price will fall below $50,000, even placing a short trade as a bet on the decline.
Veteran trader Peter Brandt also foresees a price drop, suggesting Bitcoin could dip to $46,000 due to a chart pattern known as an “inverted expanding triangle” or “megaphone” formation.
It remains to be seen whether the steady accumulation by Bitcoin whales will help stabilize the market or if their actions are insufficient to prevent further declines as predicted by prominent traders.
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