Large Bitcoin (BTC) asset holders, known on Wall Street as “whales,” significantly increased their holdings of the cryptocurrency as prices plunged in recent days.
The price of Bitcoin, the largest cryptocurrency by market capitalization, fell as low as $49,000 U.S. on Aug. 5. It has since recovered and risen to $57,150 U.S.
While many retail investors sold their Bitcoin position during the price drop, the largest holders of the digital asset seized on the lower prices to buy more BTC, according to market data.
An analysis by blockchain firm IntoTheBlock shows that crypto wallets holding between 1,000 and 10,000 Bitcoin increased their holdings as prices dropped sharply.
Wallets with less than one Bitcoin sold their holdings as the price fell.
At the same time, spot Bitcoin exchange-traded funds (ETFs) saw net outflows of $168 million U.S. as retail investors also sold their ETF holdings during the global selloff in cryptocurrencies.
The downturn in crypto prices came alongside a sharp drop in stocks around the world with Japan’s Nikkei 225 index plunging 12% on Aug. 5 and the Nasdaq index in the U.S. losing nearly 5% of its value on the day.
The selloff was sparked by growing concerns that the U.S. economy might be entering a recession and that the U.S. Federal Reserve has been too slow to lower interest rates.
