The Bitcoin Accumulation Strategy and the Outlook for the Crypto Market
Bitcoin (BTC) experienced a sharp decline in its price last week, which injected fear into the cryptocurrency market. While some investors panicked and sold off their portfolios, others saw this as an opportunity. Large bitcoin investors, often referred to as “whales” and “sharks,” seem to view the current bitcoin price as a bargain and are accumulating significant volumes of BTC.
Whales and Sharks Filling Their Pockets
Santiment, a well-known on-chain analysis platform, recently revealed through a tweet that whales and sharks in the cryptocurrency ecosystem have been significantly increasing their holdings. These investors, who own between 10 and 10,000 BTC, have added a total of 11,628 BTC to their portfolios since August 17th. At the current bitcoin price, this accumulation is valued at approximately $307 million.
It’s worth noting that these large-scale investors don’t only expand their holdings when the cryptocurrency market is in a decline. After the news broke that BlackRock, the world’s largest asset manager, had filed an application to obtain a bitcoin spot Exchange Traded Fund (ETF) on the US market, whales and sharks also purchased a substantial amount of bitcoins.
A while back, Santiment shared that these cohorts had acquired a staggering 71,000 new coins within a span of approximately three weeks. This buying behavior reflects the confidence these market participants have in a thriving future for bitcoin. Despite short-term price fluctuations, these investors firmly believe in the underlying value of BTC.
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More Storm on the Horizon for the Crypto Market?
As previously mentioned, historical data suggests that September is typically a weak month for bitcoin. Based on past performance, a further sell-off wouldn’t be surprising. Since 2013, BTC has only closed September in the green twice.
However, this doesn’t mean that we can completely write off the upcoming month. There are numerous factors that influence the price of bitcoin. Nonetheless, it remains interesting to see if bitcoin will once again succumb to its September curse.
Despite the uncertain outlook, the accumulation strategy of large investors indicates a positive sentiment and a belief in the long-term potential of bitcoin.
Tags: Bitcoin, BTC, Santiment, Whales, Sharks