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Bitcoin Whales Quietly Buy $439 Million Amid Market Panic

by xyonent
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Btc 0f877b.webp.jpeg

On-chain data shows that large investors in the Bitcoin network continued to buy during market panic following the recent crash.

Net flows from large Bitcoin holders have been positive recently

According to data from the market information platform Into the BlockThe largest wallets on the Bitcoin blockchain have seen large net inflows recently.

An interesting on-chain metric here is “Large Holder Netflow”, which tracks the net amount of cryptocurrency moving in and out of wallets associated with “Large Holders”.

IntoTheBlock defines a large holder as an investor who owns at least 0.1% of an asset’s entire circulating supply, and as there are over 19.7 million BTC tokens in circulation, this figure equates to roughly 19,700 BTC.

The stack is worth over $1.2 billion at the current exchange rate of the cryptocurrency, so clearly these large holders are quite large and therefore have some influence over the market.

So their actions are worth watching, as they may contain information about the sentiment between these large institutions, even if they don’t directly translate into asset prices.

Below is a graph showing the trend in net flows of large Bitcoin holders over the past month.

The value of the metric appears to have been positive in recent days | Source: IntoTheBlock on X

As shown in the graph above, net flows from large Bitcoin holders have mostly remained above zero in recent weeks, indicating that these investors are receiving net deposits into their wallets.

This buying spree by whales comes as the cryptocurrency is experiencing a bearish trend that led to the cryptocurrency crashing yesterday, with prices dropping below $60,000.

Larger holders seized the opportunity, recording the strongest net inflows since late May. These investors bought a net 7,130 BTC during yesterday’s dip, which is now worth roughly $439 million.

Not surprisingly, this strong buying suggests that whales believe the recent lows offer a profitable opportunity for further crypto accumulation, regardless of how much FUD is being spread across the market.

As IntoTheBlock’s head of research Lucas noted on X, there is another potentially bullish development happening for Bitcoin at the same time. postIt appears that a large amount of USD Coin (USDC) was flowing into exchanges yesterday.

USDC Exchange Netflow

Looks like the value of the indicator has been just registered a positive spike | Source: IntoTheBlock on X

Since investors typically transfer their coins to these central institutions whenever they want to sell them, these net inflows of USDC mean that huge amounts of money will be needed to exchange the stablecoins for other cryptocurrencies, possibly like Bitcoin.

Therefore, the $228 million net USDC inflow into exchanges is likely to increase buying pressure on BTC.

BTC Price

At the time of writing, Bitcoin is hovering around $61,500, down more than 4% over the past seven days.

Bitcoin Price Chart

The price of the asset appears to have plummeted over the past two days | Source: BTCUSD on TradingView

Featured images from Dall-E, IntoTheBlock.com, charts from TradingView.com

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