Bitcoin (BTC) Whales Have Started Buying Again While Short-Term Investors Book Major Losses

By Bhushan Akolkar
Published May 22, 2021 Updated May 22, 2021
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Bitcoin (BTC) Whales Have Started Buying Again While Short-Term Investors Book Major Losses

By Bhushan Akolkar
Published May 22, 2021 Updated May 22, 2021

Major FUD has ensued in the crypto market after Bitcoin (BTC) showing a very high volatility dipping twice under $35,000 levels within a week’s time. This comes amid China announcing a major crackdown on Bitcoin miners.

This sharp 15% correction has caused Bitcoin (BTC) to lose more than $100 billion of its valuations in no time. Of course, the tremors are felt across the crypto market which is down by 13% as of press time.

However, as it happens during every market correction, Bitcoins move from the weak hands to the strong ones. After systematically liquidating their holding until the first market crash on May 17, The Bitcoin whales have turned the tide and are buying the dips. Chainlaysis chief economist Philip Gradwell spots the clear trend reversal. However, the liquidations have been higher than the accumulation as of now.

Also, Gradwell points out the rate of Bitcoin deposits at exchanges has slowed down during the Friday (May 21) crash, compared to the market crash earlier on Wednesday, May 19. During Wednesday’s price crash, the BTC exchange deposits were at a six-time high.

Huge Panic Among Short-Term Bitcoin Investors

When investing in markets, experience is the biggest teacher! This is clearly seen with short-term investors booking major losses. As Glassnode reports major selling has been done by short-term investors who bought in the last few months.

Strong liquidations in the Bitcoin futures market were also witnessed during the recent price correction. Just over the last few hours over $7.5 billion of Bitcoin futures open interest were liquidated.

Well, the big news is that the recent market volatility hasn’t perturbed big institutional players. Post the recent crash, Geminin exchange CEO Tyler Winklevoss tweeted that institutions continue buying the dips. As CoinGape reported, there were large OTC deals taking place at Coinbase with BTC supply moving out off exchanges.

It will be interesting to see how BTC moves from here. Whether it enters a consolidation or strong recovery.


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
827 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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