Crypto Whales Continue to Buy the Dip, Scooping Up $227 Million in Bitcoin
Recent market activity shows that crypto whales are aggressively purchasing Bitcoin (BTC), hinting at a potential market recovery. This week, Spot On Chain highlighted notable transactions, including a substantial withdrawal by a crypto whale—36LMb.
This investor moved 999.999 BTC, worth approximately $55.09 million, from Binance, with Bitcoin priced at $55,114 each.
Crypto Whales Buy $227 Million in Bitcoin
This activity is part of a larger trend where crypto whales withdrew over 4,014 BTC, valued at more than $227.7 million in just the past week. The notable withdrawals from Binance involved several key players:
- Crypto whale 1KuPi withdrew 1,110 BTC worth $64.8 million on September 2 and September 5.
- Crypto whale bc1qg moved 1,381 BTC valued at $78.25 million between September 2 and 6.
- A fresh crypto wallet – 39xG8, withdrew 100 BTC worth $5.65 million on September 4.
- Crypto whale bc1qd transferred 433 BTC worth $23.93 million between September 5 and 9.
Read more: A Comprehensive Guide on Tracking Smart Money in the Crypto Market
These movements coincided with an 11% drop in Bitcoin’s value last week, following a surge in outflows from US Bitcoin-exchange traded funds (ETFs). This marked their longest streak of daily net outflows since they were first listed earlier this year. Investors withdrew about $1.2 billion from spot Bitcoin ETFs over eight days ending on September 6.
Bitcoin dipped to a low of approximately $52,550 last week. Therefore, the dip presented an ideal buying opportunity for whales. Historically, buying during such lows often precedes a market recovery.
“We had the biggest spike in negative keywords since that big August crash last month… it ended up being the ultimate time to buy,” Brian Quinlivan, Lead Analyst at Santiment, said.
Currently, Bitcoin has rebounded about 4% from last week’s lows, now trading near $55,000.
In light of the recovery, some investors, including Arthur Hayes, former CEO of BitMEX, have closed their short positions on Bitcoin. Hayes secured a 3% profit. His decision followed comments from US Treasury Secretary Janet Yellen, who indicated monitoring potential risks in the job market.
“Bad Gurl Yellen is watching; if markets go down more, she will definitely pump up the jam by printing more money,” Hayes humorously noted.
Economic indicators also influenced market sentiment. The US non-farm payroll data revealed the economy added only 142,000 jobs in August, below the anticipated 164,000. This underperformance has led analysts to expect a Federal Reserve rate cut of 50 basis points in September.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
“We anticipate that the Fed will cut rates by 50 basis points to stay ahead of the curve, as a 25 basis point cut would be too slow to prevent more substantial damage, given the delayed effects of monetary policy over several quarters,” Markus Thielen from 10X Research commented.
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