big bitcoin (bitcoin) investors-”whales“In terms of cryptocurrencies – they seemed unfazed by the recent price weakness and their holdings increased significantly.
Data from cryptocurrency analytics firm IntoTheBlock shows that addresses containing at least 0.1% of the bitcoin supply — worth more than $500 million — increased their inventory by a total of $1.5 billion in the last two weeks of August.
The increase occurred while flows to centralized exchanges were close to zero, indicating that “there is organic buying demand rather than just funds moving to exchange addresses,” Lucas Otomoro, head of research at IntoTheBlock, wrote in a report.
Whales are entities that control large amounts of digital assets. Their purchases and sales can have a significant impact on the markets, and thus cryptocurrency watchers follow their behavior closely to anticipate market movements.
The purchases occurred during a period when the price of BTC was declining It sank to its lowest level in two monthsTemporarily raised Under a landmark court decision in Grayscale’s campaign to list a bitcoin spot fund in the US
Major coin holders first loaded after August 17, when bitcoin fell more than 10% to below $26,000, its lowest price since June, IntoTheBlock data shows.
They also increased their holdings earlier this week after the asset manager Triumph Court in Grayscale The US Securities and Exchange Commission (SEC). A federal appeals court has ordered the agency to vacate and review its refusal to convert the $14 billion Grayscale Bitcoin Trust into a more desirable Bitcoin ETF.
Analysts interpreted the court’s decision as a Key advance Toward the listing of the first Bitcoin (BTC) ETF in the United States, making the largest cryptocurrency accessible to a new class of investors.
However, Bitcoin I erased all gains From a short rally sparked by Grayscale’s ruling, it fell below $26,000 on Friday.
Otomoro said that despite the weakness in price action, the buildup indicated that “institutional investors are becoming bullish on bitcoin as ETF decisions approach.”