The king of cryptocurrencies registered the worst correction since March over the weekend, raising concerns among investors and traders alike that the parabolic rally is coming to an end. Since logging an all-time high above $42,000, BTC has since retracted to the $32k region at press time.
The pullback has resulted in many weak hands pulling their money off the table as they fear more losses. However, whales are bucking the trend and buying the dip. Data provided by an independent researcher shows that “millionaire” addresses (wallets holding over 1,000 BTC) are steadily rising.
Addresses With 1,000+ BTC Continue Growing As Whales Buy The Dip
As small traders and retail investors panic-sell their BTC, Bison Trails’ Elias Simos has noted that wealthy investors have been purchasing this bitcoin throughout December and January. In particular, Simos observed that addresses with more than 1K BTC — worth almost $350 million — have been “growing at the expense of all others”.
Noticeably, the wallets holding smaller balances have been dropping as the flagship crypto skyrocketed from $19K on Dec. 2 to the recent ATHs. The high-value BTC investors, on the other hand, are evidently confident about the future as the 1,000 addresses grow exponentially.
“Don’t Be Whale Food”
Cryptocurrency analyst Lark Davis posited that whales are great at playing the game and they do it with “billions of dollars in capital”.
“There are very rich and very powerful players in this market who are very good at manipulating the market. They’re good at playing the game, right? And they play the game with billions of dollars in capital at a time. They shake the market with massive selloffs while at the same time shorting the market. Then, when the market’s down, they take your Bitcoin that you panic sold after a 10% drop. Rinse and repeat. Rinse and repeat. Gaining more Bitcoin, adding to their positions. This is the process of trying to shake you out of your position.“
“Remember friends, don’t be whale food,” he summarized. Notably, during the 2017 bull market, bitcoin corrected by approximately 30% more than once on its way to the late December 20,000 record high. As such, the current pullback could be considered healthy for further upside.