Whales Bought $3 Billion of Bitcoin When Its Price Fell
In a market intel report that has been released by the blockchain analytics firm Chainalysis, this claim was made about “whales,” which is how large investors are referred to in the market.
The chief economist of Chainalysis, Philip Gradwell, stated that the investor whales acquired almost 80,000 bitcoins during the price crash, which is an amount that refers to above $3 billion. According to the blockchain analytics firm, the investor whales moved a significant amount of their Bitcoin assets during the price crash. Philip Gradwell stated that the asset managers and hedge funds moved 1.2 million Bitcoin at the 5 to 25% loss while the amount of Bitcoin moved at a loss of 25% or worse was 120,000. The firms and economists who work on blockchain analytics consider these actions in the market as a form of panic selling.
On-chain data monitoring by Chainalysis falls in with the report that is released by The Block on asset managers and hedge funds who buy the dip while Bitcoin was in the $30,000-$35,000 range. BTC PEERS also reported that the crash experienced in the cryptocurrency market lasted longer than expected and led to a loss of over $350 billion in just a couple of days. The price of Bitcoin before the crash was $45,000, while it saw a low of almost $30,000 at one point. This brought along the liquidation of an amount of $3.3 billion within only one hour.
While we witnessed significant on-chain losses during this latest price crash, Philip Gradwell claims: “This was a smaller number of bitcoins sent at less than in the late 2017 and mid-March 2020 price crashes, suggesting that last week was not the worst capitulation of holders in bitcoin’s history.” However, in terms of fiat money, the loss was the biggest ever in bitcoin history, referring to an amount of $3.2 billion. Ethereum experienced a similar loss, as well. The amount of Ethereum sent at a 5 to 25% loss was around 22.6 million.
The report states that the bitcoin price is almost back to the average purchase price over the last year. Chianalysis’s chief economist Gradwell points out that the average purchase price of Bitcoin last year was $37,800, and now the world’s most famous coin has passed beyond again even though it experienced a price crash. When considering the history of Bitcoin, it is also safe to claim that its price has almost always returned to this average price, and in a sense, it provides a floor for investors.
Bitcoin is once again at the center of attention. The economists, investors, and hedge funds are closely watching the fluctuations in Bitcoin’s price and making their decisions accordingly.