Bitcoin Whale Transactions Reach 4-Month High During Crypto Dip

Bitcoin Whale Transactions Surge to Four-Month High Amid Crypto Decline

Bitcoin whale transactions soared to their highest levels since April during a significant cryptocurrency market downturn on August 5 and 6, according to on-chain data.

On August 8, Santiment, an on-chain analytics platform, revealed that wallets holding between 10 and 1,000 Bitcoin rapidly increased their holdings during the recent dip, when Bitcoin fell below $50,000. The data showed 28,319 Bitcoin transactions worth over $100,000 and 5,738 transactions exceeding $1 million on those two days as prices plummeted.

Bitcoin dropped approximately 18% on August 5, falling from just over $60,000 to below $50,000 in less than a day. However, the cryptocurrency has since seen a partial recovery, regaining the $57,000 level following a surge in buying activity during the dip.

On August 7, Cointelegraph reported that Bitcoin whales had accumulated nearly $23 billion worth of Bitcoin over the past 30 days, with the most significant activity occurring during the market crash. CryptoQuant’s founder and CEO, Ki Young Ju, stated that more than 400,000 Bitcoin had been moved to permanent holder addresses since early July. Ju noted that while old whales who held Bitcoin for over three years sold their holdings between March and June, there is no significant selling pressure from these old whales currently.

Prior to the market slump, Cointelegraph reported on August 3 that Bitcoin whales were moving their assets off exchanges at the highest rate in nine years. Whales with at least a thousand Bitcoin had withdrawn the most BTC from exchanges since 2015. However, investors in U.S.-based spot Bitcoin exchange-traded funds (ETFs) did not mirror this trend, with aggregate outflows of $554 million recorded between August 2 and 6, according to Farside Investors.

10x Research highlighted concerns about the market’s direction, noting on August 8 that the absence of ETF buyers during the dip is troubling.

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