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Bitcoin Rebounds to $70K: Sharks and Whales Ignite Buying Frenzy
- Bitcoin pushes back to the USD $70K milestone on the back of massive trading day.
- Traders with high BTC holdings (USD $700K+) were largely responsible for the resurgence.
- Whales within that demographic purchased nearly 0.27% of BTC’s available supply within a single day of trading
Is the dip over?
This is the question on everybody’s minds as Bitcoin pushed past a week of uncertainty to reclaim its place at USD $70K (AUD $107K).
Related: Analyst Declares Altcoin-Buying Season, Cites Undervaluation
After falling as low as USD $61.3K (AUD $94K) last week, BTC once again made a mockery of non-believers by surging 4% in the past 24 hours to sit just a few thousand below its previous all-time high. With the Bitcoin halving just around the corner, some believe the time to buy at a discount has come and gone, while others are not so sure.
0.263% of Available Supply Purchased in a Single Day of Trading
It’s unclear exactly what went down last night. Perhaps there was a hot sale at the undersea krill store. Or maybe Leviathan returned to the seas, causing creatures to secure their long-term savings. Whatever the case, whale activity exploded out of nowhere over the weekend.
According to data analysts Santiment, nearly 52K BTC (worth approximately $300M USD) was purchased by wallets that already hold 10-10K BTC. This wasn’t just a rush of all traders buying back into Bitcoin – it was those that already have pretty handsome holdings.
To put this in context, 52K BTC is nearly 0.27% of the current available supply. And it was all purchased within one day, by one specific demographic.
Although the exact reason behind this surge in buying is unknown, Santiment speculates it’s BTC believers picking up more before the impending halving permanently affects supply. Interestingly, the analysts note that this mass accumulation may be negative for the short-term prospects of altcoins.
Related: Iceland to Slow Down Bitcoin Mining as Electricity Demand Surpasses Household Use
Most of the Bitcoin was purchased with stablecoins, which are typically used to buy into a specific coin at any given time. If whales are giving up access to stablecoins, it means they are more likely to bunker down in BTC than pump money into altcoins.
How the market responds from here will be a fascinating watch.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
