Large Bitcoin (BTC) holders appear to be aggressively buying the dip amid the latest price correction, raising optimism that the coordinated selloff could be about to end.
Using data from Glassnode, Morgan Creek Digital’s Anthony Pompliano recently concluded that the so-called Bitcoin whales – entities who hold between 10,000 and 100,000 BTC – purchased 122,588 BTC during the height of the market crash on Wednesday. Much of the foot traffic to crypto exchanges came from the United States, as evidenced by Coinbase’s $3,000 BTC premium at one point.
Crypto hedge funds interviewed by Bloomberg have also reiterated that they were, in fact, dip buyers. MVPQ Capital and ByteTree Asset Management, both based in London, along with Singapore’s Three Arrows Capital, all bought the dip.
Kyle Davies, co-founder at Three Arrows Capital, told Bloomberg:
“People that were borrowing money to invest, they were wiped from the system […] Every time we see massive liquidation is a chance to buy. I wouldn’t be surprised if Bitcoin and Ethereum retrace the entire drop in a week.”
As Cointelegrah recently reported, at least one prominent whale who sold BTC at a price of $58,000 has not only reaccumulated, but added to their holdings. The unknown entity sold 3,000 BTC on May 9 before buying back 3,521 BTC in three separate trades on May 15, 18 and 19.
The Bitcoin price languished below $32,000 on Sunday, as traders continued to test the limits of a new bearish range. The largest cryptocurrency by market cap briefly fell below $30,000 on Wednesday – a level that appeared highly unlikely to ever be penetrated again – before quickly shooting back up to $37,000. However, overhead resistance has limited BTC’s rally to no greater than $42,000.