On Saturday, BTC’s market cap hit the $755B mark for the first time in seven days after its price hit the $40K level. This week the crypto market volatility rose, with the top digital assets surging by over 21% in the last few days.
Increased BTC Accumulation
The news of Russia’s invasion of Ukraine pushed BTC’s price down to the $34K level after starting the week at the $40K level. While traders in most financial markets started making panic sells, the selling pressure was even more intense in the crypto market. But, crypto whales went against the crowd and increased their crypto holdings.
As of February 25, the BTC whales’ accumulation of the leading digital asset was the highest within the past 30 days. Despite the declining price of BTC to sub-$35K levels following the Russia-Ukraine war, BTC whales have been making huge transactions.
Data from on-chain analytics firm Santiment revealed that it is the first time since January 24 that there has been BTC transactions worth between $100K and $1m+. The firm further remarked that BTC’s price surged by nearly 16% the week after this happened last month and noted that the same thing might repeat itself this month.
BTC Whales Remain Unshaken Amidst Global Economic Woes
The recent global economic woes caused an intense sell-off of the leading digital asset, and its price declined more than it has ever done since late last year. But BTC whales weren’t shaken by this sharp price drop. Instead, many of them used it as an opportunity to increase their BTC holdings. The latest Glassnode data confirmed this fact, saying short-term holders are selling in panic while long-term holders are buying.
Glassnode explained that there is now an inverse relationship between the sth (short-term holder) loss and the lth (long-term holder) loss. As the sth loss is rising, the lth loss is reducing. An analyst with global block on-chain analytics firm, Marcus Sotiriou, stated that “the asset under management for Canadian purpose BTC spot ETF has hit a new peak of 32.27k BTC following the addition of about 1.3k BTC within 24 hours – their highest inflow for nearly 12 months.”
With BTC bulls stepping in at the $35k level, it implies that the leading digital asset had already bottomed out and is starting a new uptrend move. However, it may also be the consequence of the announcement of sanctions against Russia by the united nations.
Relevance Of This BTC Dip
Mike McGlone, a senior crypto Bloomberg analyst, opined that “this dip is a significant period in history, and many investors would consider it the best-ever buying opportunity to accumulate BTC.” In the same vein, Alex Mashinsky, Celsus Network CEO, stated that “the Russia-Ukraine war was BTC’s catalyst in establishing crucial support at the $30K price level.”
You’d recall that a Glassnode analysis revealed that the $35K price region is a much greater demand absorption area, and traders need to be mindful about it as it represents a massive buy opportunity. CoinMarketCap data showed that BTC’s market dominance is now about 42% following the recent rally.