🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

Are Bitcoin Whales Buying The Dip With Less Enthusiasm?

Published 08/05/2024, 16:46
Updated 08/05/2024, 18:10
© Reuters.  Are Bitcoin Whales Buying The Dip With Less Enthusiasm?
BTC/USD
-
LINK/BTC
-

Benzinga - by Murtuza Merchant, Benzinga Staff Writer.

New on-chain data analysis suggests that while large Bitcoin (CRYPTO: BTC) holders, often referred to as “whales,” continue to accumulate Bitcoin during dips, the intensity of their buying appears to be waning.

Accumulation Spree, But With Reservations

According to analysis by IntoTheBlock,, addresses holding over 1,000 BTC have been actively accumulating the cryptocurrency in recent months, particularly during price dips.

This buying activity has historically been followed by short-term price increases.

However, the report highlights a concerning trend: the size of each accumulation spike is decreasing.

Chainlink Investors Show Accumulation Despite Price Fluctuations

IntoTheBlock also shared insights into the activity surrounding Chainlink (CRYPTO: LINK), a decentralized oracle network. Despite recent price movements, on-chain data from the past month reveals a negative net flow of LINK tokens from exchanges, signifying accumulation by investors. During this period, the total net outflow amounted to nearly 3.6 million LINK.

This pattern could indicate a declining level of conviction among whales.

While they are still buying the dip, their actions suggest a potentially reduced appetite for large-scale Bitcoin acquisitions.

Veteran trader Cold Blooded Shiller captured this sentiment perfectly in a tweet, stating: “$BTC with LTF hope, and the potential for HTF concerns” (LTF = short-term, HTF = long-term).

Also Read: Japanese Crypto Exchange Coincheck To List On Nasdaq Listing Via SPAC Merger

What Does This Mean for Investors?

The contrasting behavior of whales and Chainlink investors highlights the importance of considering multiple data points when making investment decisions.

While dwindling whale buying enthusiasm for Bitcoin presents a potential concern, on-chain accumulation of LINK suggests some investor confidence in the project’s long-term prospects.

The cryptocurrency market remains highly dynamic, and staying informed about emerging trends and investor behavior is crucial for success.

Benzinga’s upcoming Future of Digital Assets event, taking place on Nov. 19th offers a valuable platform for investors of all levels.

Read Next: Spot Bitcoin ETFs See $15M Outflows As Digital Asset Funds Continue To Bleed

Image: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.