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Bitcoin whales have benefited greatly from the recent BTC crash

Bitcoin whales have benefited greatly from the recent BTC crash

A few weeks ago, Bitcoin (BTC) suddenly lost a lot of value. While many traders investing with leverage have been forced to sell, the opposite is true for less active investors. According to on-chain data, they just stocked up on additional coins.

Bitcoin whales seem optimistic

According to CoinDesk, this is what IntoTheBlock writes in a research report. According to the analytics firm, investors who own at least 0.1% of all BTC in circulation have invested an additional $1.5 billion in Bitcoin over the past two weeks.

According to Blockchain.com, there are currently around 19.47 million bitcoins. The wallets of the group examined each have at least 0.1% of it, i.e. around 19,470 BTC. Such a wallet is converted to the current Bitcoin price worth more than 460 million euros.

So 1.5 billion extra doesn’t sound like much for this group, but we have to emphasize that there are very few addresses with this number of coins. According to BitInfoCharts, there are only 103 wallets with 10,000 to 100,000 BTC and only 4 wallets with 100,000 to 1 million BTC. You don’t just collect that many coins.

Lucas Outumuro, chief analyst at IntoTheBlock, also highlighted that inflows to exchanges have dropped to near zero. This means that the increase must represent almost “organic growth”.

On-chain data shows that wallets grew on August 23rd and 29th. That doesn’t say when the whales bought more, but it certainly was after the big crash the week before. After all, the share price has fallen by around 11%.

Most on-chain bitcoin data is positive

Other studies also suggest that Bitcoin whales are bullish. Notably, loyal HODLers have been buying more since last March, according to Bitfinex, and the number of BTC on exchanges hasn’t been as low as it is now since 2018.

However, there are also less positive signs. For example, soon after Grayscale won its lawsuit with the SEC, bitcoiners sent a lot of BTC to exchanges, actually around 30,000 BTC. In the short term, this could be less favorable for the share price.

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