Last week, Bitcoin slipped below the psychological $30K threshold in response to widespread concerns regarding the de-pegging of UST from the United States dollar. Traders continue to fear that other big stablecoins will experience the same devastation. USDT fell to as low as $0.95 on certain exchanges on 12th May.
BTC has recovered and now trades at about $28,991 after temporarily falling as low as $26.7K in the morning hours of 12th May in response to this speculation-driven panic. The $28K level is seen as a particularly crucial milestone due to the fact that the price rebounded off of it in 2021 before making a prolonged bullish move to $64K.
However, the latest decline appears to have sparked a flurry of action among BTC whales, who will purchase the dip.
BTC Whale Transactions Hits New ATH Since January
There is a strong indication that BTC whale wallet addresses perceive BTC’s dip below $30,000 as an accumulation opportunity. Since January, Santimentfeed has had the highest number of transactions over $100,000, and their BTC supply is increasing. Following BTC’s fall below $30K, Santiment commented.
Santiment said in a second tweet on 11th May that the quantity of BTC circulating between wallet addresses every day had surpassed 300,000 this week.
Since February, the Bitcoin network has not experienced this much activity. It is the most extreme polarization in some time, according to Santiment.
This amount of on-chain transactions have been reflected on the ETH network, with daily transactions reaching $1 Million, the ATH level since January.
Bitcoin Exchange Whale Ratio
According to a chart published by CryptoQuant on 11th May, the Bitcoin Exchange Whale Ratio has already reached a 4.5-year high of the 72-hour simple moving average. The exchange whale ratio measures how big the top ten inflow transactions are compared to the total inflow. It frequently remains below 85% in a bull market, whereas in a bear market, it remains consistently above 85%.
The company has warned that a decline is imminent if this ratio continues to rise, as it did prior to the 2018 market crash. Based on an anonymous Twitter quant IT Tech tweet, both short-term and long-term investors are panicking and selling at a loss.
Only those that own BTC for over 18 Million dollars are selling profits till the price falls below $13,000, the crypto analyst commented on his Twitter account on 14th May. The last capitulation is currently in progress. Whenever the price falls below, a bearish market period begins.