Key Points
- Crypto whales accumulated 5,900 BTC from CEXs during a price drop, with trading volume surging by 65%.
- The U.S. government moved $2 billion worth of Bitcoin to new wallets, impacting the overall market.
The crypto market recently experienced a significant event as whales accumulated 5,900 Bitcoin (BTC) from Centralized Exchanges (CEXs) during a price drop. This accumulation was valued at approximately $397 million.
Simultaneously, the trading volume of BTC surged by 65%, indicating increased participation from traders and investors.
U.S. Government’s Bitcoin Movement
On 29th July, the U.S. government made a major move by transferring $2 billion worth of Bitcoin to new wallets. This move garnered significant attention from the crypto community and had a substantial impact on the overall market.
Following this event, BTC was trading near the $66,520 mark and experienced a 4.6% price drop within 24 hours. Despite this drop, participation from investors and traders surged by 65%, indicating potential “buy the dip” activity.
Whale Activity Amid Price Drop
In response to the price drop, whales and institutions took advantage of the situation and accumulated a significant amount of BTC. On-chain analytic firm Spotonchain reported that four whales added a notable 5,900 BTC from CEXs within 24 hours.
The whale address “12QVs” withdrew a massive 4,500 BTC worth $303 million from Binance at an average of $67,298. Out of this, 3,500 BTC worth $233 million were withdrawn just after the BTC price dropped.
Meanwhile, three other whales, likely to be one entity, withdrew 1,400 BTC worth $94 million from Bitfinex at an average of $67,185. Since 12th June, they have withdrawn a massive 3,910 BTC at an average of $65,764, and currently hold an unrealized profit of over $4.59 million.
BTC is currently moving in a downside channel pattern and is experiencing resistance from the top. If the sentiment remains the same, there is a high chance BTC could fall to the $63,350 level. However, for an upside momentum, a breakout of this downside channel pattern and a strong daily candle closing above the $71,800 mark is necessary.
In the past week, two major liquidation levels were observed near the $70,330 level on the higher side and $63,800 on the lower side. If BTC price falls to the $63,800 level, nearly $3.20 billion worth of long positions will be liquidated. Conversely, if BTC’s price hits the $71,800 mark, nearly $3.3 billion short positions will be liquidated.
Alongside this bearish outlook, BTC futures Open Interest (OI) experienced a fall of 6% in the last 24 hours, suggesting lower interest from traders and investors.
