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.
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Whales, or large crypto investors, purchased 47,888 BTC over the past week, according to the tweet from Santiment, which equals 0.24% of the total Bitcoin supply. The big accumulation was preceded by a more than year-long Bitcoin dump.
🐳 #Bitcoin's whales have now spent 13 months dumping their cumulative holdings as prices have slid. However, following a big push down in the first 3 weeks of November as #FTX news broke, 47,888 $BTC has been accumulated back in the past 5 days. https://t.co/pQZ6PHY5tW pic.twitter.com/VqTFHOvNY3
— Santiment (@santimentfeed) November 29, 2022
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 bottom. BTC 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.
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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.
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