Bitcoin crashes below $30,000 but whales are buying the dip
On Tuesday, Bitcoin’s price fell below $30,000 for the first time in a month. But amid the crash, on-chain data suggests that Bitcoin whales are actively accumulating the flagship cryptocurrency.
According to Glassnode’s Monday “The Week On-chain” report, the number of Bitcoin on exchanges has continued to drop, with an average of 36,000 BTC (approximately $1 billion) being withdrawn monthly from exchanges.
Recall that Bitcoin products and funds have recorded $15 million worth of outflows since the beginning of the month. Glassnode claims that the sustained outflows from crypto exchanges are an indicator that large investors are moving their assets into cold storage.
The on-chain analytics firm also pointed out the recent hike in the number of addresses holding Bitcoin since May, with the figure growing from about 250,000 to about 300,000. On the flip side, Glassnode admits that Bitcoin crowd sentiment is divided. It foresees impending volatility in the market.
Making a bearish case for Bitcoin, Glassnode wrote:
On-chain activity remains extremely muted this week with mempools clearing, and transaction volumes continuing to fall [...] This indicates that demand for Bitcoin block-space and on-chain settlement is low, mined blocks are not full, and the utilization of the network is relatively low.