The recent market dip in Bitcoin (CRYPTO: BTC) saw a significant increase in the holdings of large investors, commonly referred to as "whales," who collectively added over $1.2 billion worth of BTC to their portfolios.
What Happened: On Friday, as the price of Bitcoin dropped below $60,000, large investors increased their holdings by 19,760 BTC, equivalent to $1.2 billion, according to a report by CoinDesk, citing data from IntoTheBlock.
This move is seen as a significant shift in the behavior of these influential market players.
"Bitcoin whales may have finally started buying the dip," said IntoTheBlock.
These large investors, who control substantial amounts of the digital asset, are often considered to be well-informed and their actions can have a considerable impact on the market.
Their recent purchases may have contributed to Bitcoin's rapid recovery from its overnight low of $59,600 to around $65,000. The cryptocurrency is currently trading at approximately $64,000, marking a 1% increase over the past 24 hours.
"Historically, accumulations by these addresses have often preceded rises in Bitcoin's price."
Bitcoin, the largest cryptocurrency by market capitalization, has been experiencing a period of consolidation following record-breaking prices last month.
Bitcoin whales may have finally started buying the dip
— IntoTheBlock (@intotheblock) April 19, 2024
Yesterday, the biggest Bitcoin holders, holding over 0.1% of the total supply, collectively added 19,760 Bitcoins to their holdings at an average price of $62.5k. Historically, accumulations by these addresses have often... pic.twitter.com/c8K5uhkna4
Why It Matters: The recent behavior of Bitcoin whales is significant as it indicates a shift in market sentiment. This comes at a time when a new report has shed light on the role of institutions and "smart money" in influencing Bitcoin's price action.
Despite concerns about potential price volatility, Bitcoin has held strong following the fourth halving event, which saw miner rewards reduced from 6.25 BTC to 3.125 BTC.
Price Action: At the time of writing, Bitcoin was hovering at $63,694, reflecting a 0.1% increase in the last hour and a 5.9% increase in the last 24 hours, according to Benzinga Pro.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image generated using Dall-E