Bitcoin Whales Purchased 122,588 Bitcoins (BTCs) as Market Crashed
The large Bitcoin (BTC) hodlers are keeping their aggressive buying approach even when the Bitcoin price corrected by over 49% from its 7-day high (US$45,812.46) to a 7-day low (US$30,681.50). This aggressive buying at the time of the dip is raising hope that the coordinated selloff could end soon.
Morgan Creek Digital’s Anthony Pompliano has used Glassnode data to conclude that the Bitcoin whale accounts (holding anything from 10,000 to 100,000 BTCs) have purchased 122,588 BTCs on May 19, 2021 (Wednesday), the day when the market was at height of the crash. Most of the purchases were done from the exchanges in the United States. This is evidenced from the US$3,000 BTC premium on Coinbase at one point.
Bloomberg has interviewed a few cryptocurrency hedge funds such as MVPQ Capital (London-based), ByteTree Asset Management (London-based), and Three Arrows Capital (Singapore-based). All of them confirmed that they bought Bitcoin as BTC price dipped.
One prominent whale, for example, sold US$3,000 BTCs at the US$58,000 price level on May 9, 2021. The same account accumulated 3,521 BTCs through three different trades on May 15, May 18, and May 19, 2021. This shows the reaccumulation of BTCs by the whales within a week’s time.
Kyle Davies, co-founder of Three Arrows Capital, told Bloomberg:
“People that were borrowing money to invest, they were wiped from the system [...] Every time we see massive liquidation is a chance to buy. I wouldn’t be surprised if Bitcoin and Ethereum retrace the entire drop in a week.”