FTX’s recent crash has caught the crypto market off-guard, with Bitcoin (BTC) and Ethereum (ETH) prices taking a 15% hit. But even in the midst of this decline, it appears that whales are still accumulating BTC.
Dan Lim, an analyst at CryptoQuant reported that after the FTX crash, there was a significant drop in Bitcoin exchange reserves. He went on to say that this is most likely because of anxiety surrounding potential future exchange debacles. Additionally, the current global economic situation has only worsened since then.
Many traders and investors believe that the market will continue to decline in the short term, as well as over the next few months.
The FTX flash crash engineered a market plunge of more than $100 billion, and the total crypto market capitalization is now about $847 billion.
The data suggests that whales have been buying Bitcoin during the market crisis. He hinted that these whales have been accumulating Bitcoin for a long time, and are taking advantage of the decline in BTC price to add more to their holdings.
An expert has urged crypto investors to be cautious in the current market conditions which are not favorable in the long term. However, he believes that buying Bitcoin now is a wise move for whales. Nevertheless, he dropped that it’s not advisable for small investors to buy Bitcoin here and they need to respond as per the conditions.
Bitcoin prices have plunged 15% over the past seven days, with BTC currently trading at an average price of $16,949. Its 24-hour trading volume stands at a whopping $37.4 billion.
According to Glassnode, this week the shrimp alone have brought in 33.7k BTC, resulting in a 30 day increase of 51.4K Bitcoin. This is the second largest level of inflow in history and has surpassed the peak of 2017’s bull market.
The Crab (who has 1 and 10 BTC) took an aggressive approach, buying 48.7K Bitcoin off exchanges. This is similar to the 2017 bull market peak. Now whales holding more than 10 BTC have over 1591 of the circulating supply under their control.
