Whales and institutions buy Bitcoin

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Data from Chainalysis shows that large investors bought 34,000 BTC on Tuesday and Wednesday

Last week was the worst for Bitcoin so far this year. During the Black Wednesday crash, Bitcoin fell by over 30% to $ 30,000 lows not seen since January. The green day candle the following day made many optimistic that Bitcoin would recover quickly. But that was not the case over the weekend, there were further losses.  On Sunday, Bitcoin fell by 10%, hitting a price of $ 33,800.

Recently, there has been an increasingly negative mood around Bitcoin, driven by various news. For example, the proposal of the US Treasury Department to introduce a reporting requirement from $ 10,000, comments by Elon Musk and China’s ban on Bitcoin mining and crypto payments.

However, while the retail market embraced and sold on FUD (fear, uncertainty and doubt) around these headlines, there were also signs of numerous purchases. Data from Glassnode showed that Bitcoin stock market outflow volume reached an all-time high (AZH) yesterday, showing accumulation. Meanwhile, the volume of USDC stock market inflows reached also an AZH, suggesting that investors are preparing to buy more cryptocurrency.

So who buys the dip? According to a Bloomberg report last Friday, it’s the institutions. Over the past week, several crypto hedge funds have expanded their Bitcoin holdings, including MVPQ Capital, ByteTree Asset Management and Three Arrows Capital. Meanwhile, Blocklabs Capital Management has been buying Ethereum, Solana and other assets from the decentralized financial sector (DeFi) at last week’s low prices.

In fact, data from Chainalysis showed that large investors bought 34,000 BTC on Tuesday and Wednesday.

Kyle Davies, co-founder of Three Arrows Capital, told Bloomberg: „In every massive liquidation, we see a buying opportunity. It wouldn’t surprise me if Bitcoin and Ethereum make up for the entire price slump in a week.“

It is also necessary to take into account orders that take place outside the exchanges. The founders of Glassnode pointed out that the transfer volume of over-the-counter wallets tends to skyrocket during lows, as institutional investors may not want to tax Bitcoin.

You twitter: „Again, institutions increasingly buy during a decline. Wherever the # Bitcoin lows end up this summer, they won’t stay long. Simply by hodlen.”In fact, the largest bitcoin outflow of OTC counters since December took place last Wednesday.

So while many retail investors get nervous and sell during the current bear market, it seems that the whales and institutions are on the other side.