Bitcoin has been facing a tough time in the market recently, with prices dropping and negative market conditions prevailing. Despite this, large investors are seeing this as an opportunity to accumulate more Bitcoin. These investors, who hold more than $600,000 worth of Bitcoin, have been increasing their holdings over the past six months.
According to Santiment, a platform that tracks on-chain data, investors holding more than 10 BTC in their wallets have been actively accumulating more Bitcoin. In the last six months, these investors have increased their collective holdings by 1.07%, adding over 5,000 BTC to their wallets.
Interestingly, these investors tend to increase their buying activity when the price of Bitcoin drops. For example, when the price crashed in early May, these wallets increased their purchases. Now, as the price struggles to stay above $60,000, they are once again buying more Bitcoin. In the last month alone, their holdings have increased significantly, totaling 16.17 million BTC.
Another indicator of increased buying activity is the change in USDT and USDC holdings of these large wallets. Normally, investors hold stablecoins like USDT and USDC to avoid market volatility. However, a decrease in these stablecoin holdings suggests that investors are buying more Bitcoin. The data shows a drop in USDC holdings by 1.99% and USDT holdings by 5.37% in the last six months.
This aggressive buying behavior at lower prices indicates that investors are expecting a price recovery in the near future. If this trend continues, it could provide strong support for Bitcoin’s price at $60,000 and potentially lead to a price increase.
In conclusion, despite the current bearish market conditions, large Bitcoin investors are taking advantage of the lower prices to accumulate more Bitcoin. Their buying activity, especially during price dips, suggests confidence in a potential price recovery. This accumulation could provide the necessary support for Bitcoin’s price and pave the way for future price increases in the market.