Whales take advantage of falling bitcoin prices

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Against the background of the market correction, bitcoin whales have increased their positions in the first cryptocurrency, and large Ethereum addresses continue to hold assets. Analysts of Santiment came to such conclusions.

According to the company, the number of Bitcoin addresses with balances from 100 BTC to 10,000 BTC has been steadily growing for two and a half weeks.

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“It seems that whales are buying confidently on the fall,” the analysts concluded.

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The NVT indicator indicates the continued bearish sentiment for the first cryptocurrency. At the same time, on-chain activity is declining – on June 5, the indicator reached a minimum since June 27, 2020.

The NVT indicator for the bitcoin network. Data: Santiment.

The supply of digital gold on exchanges is shrinking after a significant spike two weeks ago. Experts consider this to be a bullish sign – investors are withdrawing assets for safe storage in non-custodial wallets.

Dynamics of Bitcoin supply on exchanges. Data: Santiment.

Analysts noted that large Ethereum holders do not intend to close their positions. The number of addresses holding 1,000-100,000 ETH practically does not change during the period when the asset fluctuates in the range of $ 2000- $ 2500.


“This group of investors is still holding on to the huge amount of tokens that they have been accumulating at a rapid pace since October last year,” added the experts.


Dynamics of Ethereum addresses with a balance of 1,000-100,000 ETH. Data: Santiment.

For the first time since April 2020, the NVT indicator for Ethereum is indicative of a bearish investor sentiment. Analysts also recorded a decrease in the activity of addresses in the network of the second cryptocurrency, but not as significant as in Bitcoin.

NVT indicator for the Ethereum network. Data: Santiment.

Ethereum supply on cryptocurrency exchanges has remained largely unchanged in the last period of volatility. According to experts, many ETH holders have taken a wait-and-see attitude, watching developments around digital gold.

Dynamics of Ethereum supply on exchanges. Data: Santiment.

According to journalist Colin Wu, exchange-traded funds from investment company Purpose Investments have taken advantage of the decline in cryptocurrencies to gain positions.

Purpose Bitcoin ETF bought 100 BTC, bringing the holding to 19,508 BTC. The Purpose Ether ETF acquired 574 ETH – now it controls 54,520 ETH.

Wu noted that exchange-traded funds Ark Invest are also increasing their positions. The investment company acquired 18,746 shares of the Grayscale Bitcoin Trust (GBTC) and 13,718 shares of the Coinbase cryptocurrency exchange.

The ARK Innovation ETF manages 7.44 million GBTC shares and 799,799 Coinbase shares, while the ARK Next Generation Internet ETF owns 3.13 million shares of Coinbase.

While some whales are building up their positions, other large Bitcoin holders – miners – are selling cryptocurrency. The expert of the analytical company Glassnode William Clemente III drew attention to the fact that over the past week the balance of digital gold in their wallets has decreased by more than 5,000 BTC.

On May 8, the first cryptocurrency fell to $ 33,000 after a long sideways price movement. As a result, the rest of the market was also in the red.

Let’s remind, the technical analyst and the head of Factor LLC Peter Brandt admitted that in the long term the market value of bitcoin will rise to $ 100,000.

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