The crash of the Terra (LUNA) ecosystem had a huge impact on the cryptocurrency market. Every crypto seemed to suffer, and even Tether’s USDT started showing signs of weakness. But for avid bitcoin (BTC) holders, this was no reason to sell. In fact, on chain data indicate that these investors have just bought more.
Bitcoin HODL strong
That writes the crypto market researcher IntoTheBlock on Twitter† This was also reported in the daily bitcoin market update this morning, but deserves some additional information. According to IntoTheBlock’s on-chain analysis, investors who have been holding their BTC for more than a year have seen significant bought since the Terra crash.
These addresses have bought as many as around 250,000 bitcoins in the past few weeks. These BTC are worth about $7.5 billion at the time of writing, and in total these wallets now have about 12.73 million BTC on their balance sheets. That’s a new record. However, IntoTheBlock does not report exactly how many wallets are involved, so it is difficult to calculate how much BTC each wallet holds on average.
Strong conviction.$BTC HODLERS (addresses holding >1year) have increased their balance by 250,000 $BTC since the #terra collapse started on May 7th.
Existing addresses have been adding significantly to their balance in this sell-off, reaching a new all-time high of 12.73m $BTC pic.twitter.com/EokQNq7nQV
— IntoTheBlock (@intotheblock) June 1, 2022
Whales also continue to buy BTC
Also glass node notes that there is still significant BTC accumulation. Bear market or not, investors continue to stock up on bitcoins. Moreover, it does not only concern small retail investors, but also large holders. Holders with a token balance of 1 to 10 show a rising upward trend, but people with even up to 100 BTC have been buying again since the beginning of this year.
However, we still have to take a stab at it. In the financial world there are no certainties, and a few very large whales are not oracles. These parties have often simply been early with their investments. Just because whales are already accumulating BTC, it doesn’t mean that the price will rise immediately. Especially in these poor macro conditions, all risk markets are having a hard time. Nevertheless, they may buy with a longer-term perspective.