Large investors, known as “whales,” are defying the cryptocurrency market’s downward trend by accumulating significant amounts of Bitcoin (BTC).
This wave of purchases by major participants comes amid a period of negative sentiment and price declines in the digital asset sector.
Market analysts interpret this trend as a sign of sustained confidence among whales. They view current market conditions as an opportunity to acquire more BTC at preferential prices.
Data from Santiment, a market information platform, reveals that wallets holding over 10,000 BTC were the most active buyers during this market volatility.
Despite price declines, US Bitcoin ETFs have seen over $10 billion in inflows.
These large addresses, likely belonging to exchange liquidity providers, have added a total of 212,450 BTC to their holdings. This represents a 1.05% increase in their share of Bitcoin’s total supply.
The significant accumulation by these large portfolios underscores the crucial role of exchange liquidity providers in the cryptocurrency market. By maintaining substantial reserves of Bitcoin, they can help stabilize prices and ensure seamless trading by providing sufficient liquidity.