Bitcoin Whales Take Advantage Of Market Crash To Swallow Millions In BTC


The bitcoin crash shocked the market to its core as the digital asset lost more than 50% of its all-time high, reaching $33,000. It was the result of market sell-off in the financial space, causing a ripple effect that was strongly felt in the crypto market. Market sentiment had crumbled during this period as investors scrambled to sell their holdings.

However, not everyone saw the falling prices as a signal to sell before prices fall further. Whales, who control much of the circulating supply, took this as a sign to buy and have filled their coffers with all the bitcoin that was dumped into the market by panicking investors.

Whale Gobbles Up Traded Bitcoin

A report by CC15Capital outlines a whale’s trading activities. In what turned out to be a lengthy document, it turns out that the whale had bought tens of thousands of bitcoin every few hours as traders dumped their coins. CC15Capital, an asset allocator, tracked the wallet and found that a single bitcoin wallet had bought millions of dollars worth of bitcoin.

Related literature | Market Sentiment Crumbling As Bitcoin Sell Drags To $33,000

In the case of last week’s price crash, this single whale had amassed millions in bitcoin. Each purchase ranged from $2 to $18 million worth of BTC every few hours, averaging 48,000 BTC per purchase.

It seemed as if the whale was buying up all the coins that were dumped on the market. By the weekend, the wallet had successfully increased its holdings by several hundred thousand BTC. The more the price fell, the more bitcoin the whale bought.

BTC trades above $36k | Source: BTCUSD on TradingView.com

In response, CC15Capital called on bitcoin investors to stop dumping their coins, which are bought by whales, increasing the concentration of bitcoin stock in the hands of major investors.

Tradable BTC is falling

CC15Capital also noted that the volume of bitcoin available for sale has fallen. Currently, 14.5 million of the total supply of bitcoin is illiquid. This means that this offering has not been moved nor has it been traded. It is the highest concentration of supply that appears to be held for the long term.

In the same tweet, the asset allocator explains that if the wallets with this illiquid supply increased their holdings by just 27%, totaling 4 million BTC, there would be no more coins for sale, driving supply to zero.

Related literature | Has Bitcoin Hit Bottom? Analyst says there is still a long way to go

Other whales have also benefited from the market sell-off. As supply shrinks in the exchange, these big investors make sure that there is no shortage on their side whenever a supply shortage occurs.

In two months, a whale wallet which had zero BTC in November has managed to amass an impressive amount of more than $1 billion in BTC. This account seems to have started buying with the crash and has continued to do so ever since. At the time of writing, the wallet balance is $1,013,777,643.51.

Featured image of TokeneoBit, chart from TradingView.com



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