Three days ago, Bitcoin’s market cap dropped from $56,944 to around $43,500 after the heavy and unexpected drop in price. As a result, many traders were forced out of the market through liquidation, creating extreme fear among investors other than deep-pocketed players. However, according to the emerging data, Bitcoin whales got ahead of most market participants to take advantage of this situation. One of the biggest Bitcoin whales has made a large purchase as the BTC price started to recover.
The third largest Bitcoin whale chose to remain relatively quiet during the crash and did not make any purchases through this known wallet. When BTC started to recover, it made a purchase. The third largest Bitcoin whale bought 2,702 coins at an average price of $50,621, or spent about $140 million.
As VentureFounder noted in the Twitter post below, the whale has accumulated 5,624 Bitcoins since November 22, worth $290 million at today’s prices.
You already bought 8,117 #BTC in the low $50k since the November correction, BTC dumped <$50k suddenly, what do you do?
the 3rd largest #Bitcoin whale wallet: BUY 2,702 more BTC in one day.
this #whale wallet added 2,702 $BTC today at $50.6k for a whopping total of $136.7M USD. pic.twitter.com/BlbcgpKbrR
— venturefoundΞr (@venturefounder) December 7, 2021
In addition to these, the crypto analytics company Santiment; He reported that addresses holding 100 to 10 thousand BTC have bought 67 thousand BTC (about 3.3 billion dollars).
🐳 #Bitcoin has recovered back to $50.1k Monday, and whale traders played the dip to perfection. Beginning during the dump to $43.5k, addresses holding 100 to 10k $BTC have accumulated 67k more $BTC after dumping the same amount before the price drop. https://t.co/TcTSKBy2v7 pic.twitter.com/JxZL7nGVwR
— Santiment (@santimentfeed) December 6, 2021
What to Expect from Bitcoin Whale Purchases
No matter how many short-term or long-term investors are currently in the Bitcoin market, traders always pay attention to whale activity. Because these can affect the price up or down. As Santiment noted, Bitcoin fell into the $43.5k range after Bitcoin whales started dumping.
So it’s possible that they propelled the decline through sales. Now they are back and have accumulated more BTC at a cheaper rate. We will see in the coming days how much their return will help drive more demand and price upwards.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.