Reading time: ~ 2 m
After a 20 percent decline in the first cryptocurrency on December 4, large holders have significantly increased their investments in the asset, having bought more than 67 thousand BTC. For what purpose do crypto investors continue to actively open new positions?
On December 4, the price of bitcoin per day collapsed by more than 20% and for the first time since the end of September fell to $ 42 thousand. Over the past three days, the value of the cryptocurrency has partially recovered after the collapse. On December 7, the asset is trading above $ 51 thousand, and its capitalization is $ 970 billion, according to CoinGecko.
Analysts at Santiment argue that the price of bitcoin has begun to actively recover due to the actions of the “whales”, which are buying out the fall. According to Santiment, after reducing to $ 42 thousand, addresses containing from 100 to 10 thousand bitcoins bought 67 thousand BTC ($ 3.4 billion taking into account the current exchange rate at 14:30 Moscow time).
Investors are called “whales” – large holders of digital assets.
RBC-Crypto experts explained why large bitcoin holders continue to actively buy an asset during the correction period and how this affects the digital asset market.
Fighting inflation
The main reason why large investors are actively buying bitcoin is not speculative interest, but the desire to protect their assets from depreciation amid inflation, said leading analyst at 8848 Invest Viktor Pershikov. According to him, it cannot be denied that there are so-called “bitcoin maximalists” among the large holders of cryptocurrencies. These are investors who believe not only in a significant rise in the price of the coin in the future, but also in the evolution of bitcoin into the global payment system, the analyst explained.
“Among the largest holders of bitcoin, sentiment is positive, and they expect the asset to rise in price in the future,” said Pershikov.
The analyst also added that recently the activity of “whales” has increased in terms of Bitcoin sales. According to Pershikov, this is due to the profit fixation that the cryptocurrency has brought over the past year.
“The higher bitcoin rises in price, the more sales volumes by whales will grow, since for many large participants the cryptocurrency market is still the Wild West, and they do not hope for eternal growth, preferring to take profits from cryptocurrency investments,” the analyst explained.
The market will not be the same as in 2018
Large investors act according to the principle – the cheaper, the more you need to buy, says the co-founder of Crypterium Vladimir Gorbunov. According to him, market participants already normally perceive a 20% decline in an asset due to its inherent volatility.
At the moment, the digital asset market is preparing for the pre-New Year rally, the expert believes. He explained that during this period, one part of the investors will withdraw funds to buy gifts, and the other will invest in the cryptocurrency the premiums and bonuses received at the end of the year. Where the price of bitcoin will go will be decided by the ratio of these investors, Gorbunov explained.
“The market will not be the same as in 2018, since large players will be able to keep the price above $ 30 thousand in any negative scenario, while returning the cost to today’s indicators. In 2018, there was no such support, there was a market of rapid demand and unqualified buyers. Now is the time for long-term strategies, ”the expert added.
Whales expect to double their investments
The data of Santiment analysts show the correct tendency of the market towards the accumulation of positions by large investors, says Anton Kravchenko, CEO of Xena Financial Systems. In his opinion, in the long term, the “whales” expect bitcoin to rise in price at least twice.
In May, the “whales” were not ready to actively accumulate positions in bitcoin, so the value of the asset dropped sharply to $ 30 thousand, the expert says. Since then, digital assets have received more support from institutions, according to Kravchenko.
#Preparing #start #whales #start #buying #bitcoin
