Bitcoin fell in the week beginning July 1, hitting its lowest point below $54,000, amid an intensified selloff among some of the largest holders. Several reports using data from the on-chain have blamed these selloffs to the German state of Saxony for selling bitcoins that it seized in early 2017.
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Bitcoin is largely holding its own despite this significant selloff. Bulls are preventing further price falls. Data from the on-chain indicates that Bitcoin has been able to hold its ground despite the significant selloff. Many whales have seized on this price drop to increase their own holdings. Noteworthy, Bitcoin whales have added over 71,000 BTC this week to their wallets.
Bitcoin Whales Buy 71,000 BTC in One Week
Bitcoin whales have been on a feeding frenzy this week. They collected 71,000 BTC in crypto exchanges. The German state of Saxony had been busy selling off its cryptocurrency stash. However, the big players continued to increase their huge holdings.
Social media platform X first reported this whale activity. IntoTheBlock. Looking at the graph below, it is clear that Bitcoin reached its maximum accumulation when the price dropped by 15% from $63,600 in July to $53,905 in July.
The ETFs for Spot Bitcoin also saw steady inflows despite the drop in spot prices. Funds recorded positive net flows The largest daily net flows of $310 Million occurred on the 12th July.
Bitcoins Holding Up
Last week the German state Saxony sold Bitcoins worth over 2 billion dollars and flooded markets with BTC. Many traders were skeptical when this initial selloff began. They questioned whether a Bitcoin that was already in a bearish state could survive. Analysts even forecasted a decline in the price of Bitcoin to around $47,000. Other analysts, however, believed the price drop was overstated.
Bitcoin was able to absorb and scale the effect of this sell-off much better than most expected. The cryptocurrency’s price has not dropped further, which shows that it is now stable.
The sale also shows that the cryptomarket is maturing, as it has become more stable over the past few years. Bitcoin’s total market value of $1.18 billion is much smaller than a $2 billion drop in price. This $2 billion is less than 0.2% the total Bitcoin market capital.
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Bitcoin was trading at $59.960 as of the writing. Bulls now have their sights set on breaking through $60,000 once again. If the bulls can break and hold above $60,000., it will set up a price rise in the next week.
Chart by TradingView. Image from Getty Images.
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Source: www.newsbtc.com