Large Bitcoin whale addresses owning at least 0.1% of Bitcoin’s circulating supply scooped up more than 84,000 BTC valued at $5.4 billion in July.
Data from IntoTheBlock shows that the amount of coins accumulated by these wallets in July marked the biggest single-month increase since October 2014.
The heightened activity by Bitcoin whales comes as Bitcoin price rebounded significantly in July. BTC price posted a drastic drop in early July from around $62,000 to below $55,000 driven by fears around German government selling.
By mid-July, the market had already priced in the fears around German and Mt.Gox selling activity, which saw the price rebound to around $68K. By late July, Bitcoin surpassed $69K and even touched $70K on exchanges like Coinbase.
Whales used the price fluctuations in July to accumulate more coins. This indicates that the large holders believe that the price will eventually break out from the consolidation phase between $50,000 and $70,000 and make a bullish breakout higher.
Bitcoin Whales Buy The Dip
The price of Bitcoin started trading in August at a 3% drop that has seen the price fall below $65,000. BTC was trading at $64,365 as of 03:49 a.m. EST.
The recent drop has attracted some top traders on exchange giant Binance according to crypto trader @Ali_Charts. On an X post, the analyst stated that 70% of the top traders on Binance were taking long positions and anticipating the price to rebound.
The heightened activity on the Binance futures platform is further highlighted by analyst @DaanCrypto, who noted that order books on Binance futures were seeing some wild action, with many orders valued at $300M being filled down at the current price drop.
Bitcoin’s recent price drop also coincides with the slow performance of spot Bitcoin exchange-traded funds (ETFs) on Wednesday. Spot Bitcoin ETFs posted a mere 300,000 according to Farside Investors.
The Fidelity Bitcoin ETF posted an outflow of $31 million, while the BlackRock iShares Bitcoin ETF recorded $21M in inflows.
Fed Signals Possible Cuts in September
The accumulation by top traders despite the price dips comes amid anticipation around the Federal Reserve trimming rates in September.
On July 31, the Federal Reserve Chair, Jerome Powell announced that US interest rates will remain unchanged at the $5.25%-5.50% rate set around a year ago. At the time, the US was grappling with skyrocketing inflation.
The Fed hinted at possible rate cuts in September. During his speech, Powell remained rather dovish, signaling that inflation might be cooling off.
If the Fed trims rates, it could increase demand for risk assets such as cryptocurrencies. Therefore, large traders anticipating a price recovery after the rate drop could be accumulating now.
