Whales add 71,000 BTC to their portfolios during the dip
Major Bitcoin investors have increased their holdings by acquiring an additional 71,000 BTC, valued at $3.9 billion, amid the recent dip in market prices, as detailed by IntoTheBlock. This surge in accumulation took place while Bitcoin's valuation slipped below the $54,000 mark during the latest downturn.
Simultaneously, Bitcoin-based exchange-traded funds (ETFs) have seen a remarkable uptick in interest. On a single Monday, these financial instruments attracted $300 million in fresh capital, the most significant influx since early June.
Several elements contributed to the downward trend in prices, among them was the distribution to the creditors of the infamous Mt. Gox exchange. Around 25% of the cryptocurrency held by Mt. Gox was moved to new wallets, which pushed the BTC price down to $53,600. The administrators are under a deadline to finalize these transfers by October.
In addition, the German federal government liquidated more than 80% of its Bitcoin reserves last week, fuelling the downward momentum. However, for major players owning more than 0.1% of the circulating Bitcoin supply, identified by IntoTheBlock, the drop was seen as an opportunity to buy at lower prices.
The downtrend also led to significant liquidations within the decentralized finance (DeFi) sector. Specifically, Aave V3 Ethereum, which is the leading on-chain lending protocol by total value locked, experienced liquidations of $10 million in tokens, marking its highest liquidation event since mid-April.
Despite the immediate fluctuations, the investment patterns of whales and the continued interest in ETFs indicate a robust confidence in Bitcoin's enduring value.
However, the cryptocurrency market is expected to continue experiencing volatility until the anticipated Federal Reserve interest rate reduction in September. Moreover, the potential for a large-scale sell-off of Bitcoin remains a concern for investors.
