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Number of Bitcoin Whales Continue to Rise Despite BTC Correction

This persistent accumulation of bitcoins, despite the market's unfavorable condition, indicates investors' confidence in the cryptocurrency's price trajectory.

Bitcoin Whales

While the crypto market records significant bloodshed from the recent price correction, the number of wallets holding substantial amounts of bitcoins (BTC) continues to rise.

According to a tweet by blockchain analytics firm Santiment, the number of Bitcoin whale and shark wallets has increased, with an extra 261 wallets holding at least 10 BTC. 

Santiment said these whale and shark wallets are rising while small traders offload their bags due to the market correction. Such development gives traders comfort in a long-term bullish future for Bitcoin.

Bitcoin Whales Are Buying The Dip

Over the past few weeks, BTC has experienced a major correction that saw its price fall to a level not seen since late February. Both long and short traders have been wrecked from liquidations on the heightened volatility of the crypto asset.

Bitcoin’s recent correction has been triggered by a large supply overhang from several entities, including German law enforcement and creditors of the defunct crypto exchange Mt Gox. German authorities have been on a massive Bitcoin selling spree since early June, offloading hundreds of millions of dollars worth of BTC in single transactions and causing concern among market participants.

Although analysts have clarified that the impact of the selloff is less substantial than initially believed, on-chain data has shown that crypto traders have been selling their assets for fear of incurring more losses.

As Santiment has found, Bitcoin whales and sharks have been scooping up the assets offloaded by other traders. These entities have been buying the dip, and interestingly, it has not just been in July. Sometime in late June, crypto market intelligence firm IntoTheBlock revealed that in a day, Bitcoin holders controlling at least 0.1% of the total Bitcoin supply increased their holdings by 7,130 BTC worth roughly $436 million per prices at the time.

This persistent accumulation of bitcoins, despite the market’s unfavorable condition, indicates investors’ confidence in the cryptocurrency’s price trajectory.

Bitcoin ETF Investors Are Buying Too

It is worth mentioning that Bitcoin whales and sharks are not the only investor cohorts that have been buying the dip; spot Bitcoin exchange-traded fund )ETF) investors have been taking their share of the cake as well.

Data from CoinGlass shows that U.S. spot Bitcoin ETFs have seen steady inflows in the last four consecutive trading days, with daily figures above $140 million.

Cynthia Ezirim

Cynthia Ezirim is a news reporter at Cointab who is passionate about Bitcoin, non-fungible tokens, and decentralized technology. She joined the crypto space in late 2022.