Cryptocurrency investors holding huge chunk of Bitcoins (BTC) seem to be vigorously purchasing the dip against the backdrop of the recent price decline, fueling positive sentiment that the massive selloff is nearing its end.
On the basis of data provided by Glassnode, Morgan Creek Digital’s Anthony Pompliano came to the conclusion that the large investors holding between 10,000 and 100,000 Bitcoins, also referred to as Bitcoin whales, bought 122,588 Bitcoins at the peak of the market crash.
A major portion of the sell orders to cryptocurrency exchanges came from the US, as demonstrated by the premium of $3,000 for Bitcoin on Coinbase platform. Info provided by the Crypto hedge funds to Bloomberg also reaffirmed the aforesaid details. Notably, London based MVPQ Capital and ByteTree Asset Management bought the dip. Even Singapore’s Three Arrows Capital joined the buying.
While speaking to Bloomberg, Kyle Davies, co-founder at Three Arrows Capital, opined as follows:
“People that were borrowing money to invest, they were wiped from the system […] Every time we see massive liquidation is a chance to buy. I wouldn’t be surprised if Bitcoin and Ethereum retrace the entire drop in a week.”
Interestingly, one of the several whales who sold Bitcoin at a price of $58,000 has rebought the crypto and has also increased the holdings. The anonymous trader liquidated 3,000 Bitcoins on May 9 and rebought 3,521 Bitcoins in three distinct transactions on May 15, 18 and 19.
Earlier today, Bitcoin (BTC) hovered around $32,000 as bear operators tried to push the numero uno crypto below the $30,000 level. Currently, it seems that the level is hard to get broken as Bitcoin has rebounded to trade at $35,198, reflecting a loss of 4.2% in the past 24 hours, at the time of writing this article. Nevertheless, the king of crypto is likely to face heavy resistance at $42,000 level.
