1.08 -0.15%
  • BTC
    27365.73 2.15%
  • ETH
    1859.58 2.38%
  • SOL
    19.9 2.36%
  • ADA
    0.37 1.09%
  • AVAX
    14.85 1.09%
  • DOT
    5.4 1.77%
  • LTC
    92.43 1.8%
  • BCH
    116.46 1.4%
  • CRO
    0.06 0.65%
    0.88 1.7%
  • LINK
    6.58 0.7%
  • XLM
    0.09 0.58%
  • UNI
    5.14 1.28%
  • SHIB
    0 1.02%

Almost 50,000 BTC bought recently – rally incoming?

Crypto whales are accumulating large portions of Bitcoin, equal to approximately $800 million in just a few days.

Whales accumulate long positions

Most investors were dumping their cryptocurrency investments throughout the entire year 2022, with whopping losses. However, recent data show whales have accumulated a lump of bitcoins in a matter of days.

Related article: Should central banks buy Bitcoin? Harvard paper suggests so

Whales, or large crypto investors, purchased 47,888 BTC over the past week, according to the tweet from Santimentwhich equals 0.24% of the total Bitcoin supply. The big accumulation was preceded by a more than year-long Bitcoin dump.

The biggest part of this occurred in November and is related to events surrounding the FTX collapse. According to Santiment, during the first three weeks of the month, whales owning between 100 and 10,000 BTC sold 1.36% of the total supply of the cryptocurrency.

The number of recent buying activities is still low compared to last year. However, given that a “Santa Rally” typically begins on the financial markets in December, several investors may have decided to accumulate crypto. Especially bitcoins.

Whales will likely amass BTC positions in the next few weeks, which may cause markets to end up in green while many are still waiting for the Bitcoin bottomBTC is currently more than a year in a downtrend and 76% lower from its all-time high level of $69,000. Will we see a Santa Rally this year?

Final thoughts

In terms of time and price decrease, Bitcoin is definitely in an attractive zone to buy long-term. It’s very similar to the situation when the price of BTC sat at around $3,000 at the end of 2018. Interest rates in the US decreased from 2.5% at the beginning of 2019, which is when the bottom was formed. 

Also read: Web3 and the current FIFA World Cup

Inflation and interest rates are now even higher than they were back then. So although the situation looks very similar, it will very much depend on how inflation will be handled along with rates. Another, but smaller, rate hike by the Fed should arrive in December. 

In my opinion, this could be the perfect time to accumulate positions for the long run, as cryptocurrencies are in one of the longest and most devastating downtrends ever.

I got into financial markets by accident in 2012 and started with Forex trading. Later in 2017, I started investing in stocks in cryptocurrencies and began writing articles profess...


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