Bitcoin whale transactions reached their highest levels in four months during the crypto market downturn on August 5 and 6, according to on-chain data from Santiment. Wallets holding between 10 and 1,000 BTC “rapidly accumulated” Bitcoin as the price dipped below $50,000, marking a significant increase in large transactions.
Whale Activity Amid Market Rout
On August 8, Santiment reported that there were 28,319 Bitcoin transactions worth more than $100,000 and 5,738 transactions worth over $1 million during the market dip. Bitcoin’s price plummeted around 18% on August 5, falling from just over $60,000 to below $50,000 within a day. However, the price has since rebounded to around $57,000 due to this aggressive dip buying.
Accumulation by Bitcoin Whales
Bitcoin whales, or permanent holder addresses, accumulated nearly $23 billion worth of Bitcoin over the last 30 days, with the highest activity during the market crash. CryptoQuant founder and CEO Ki Young Ju commented that more than 400,000 BTC had moved to permanent holder addresses since early July. He highlighted that whales holding BTC for over three years sold their holdings to new whales between March and June, but there is currently no significant selling pressure from long-term holders.
Movement Off Exchanges
On August 3, just days before the market slump, Bitcoin whales were moving BTC off exchanges at the highest rate in nine years. According to reports, whales with at least 1,000 coins moved the most BTC out of exchanges since 2015, signaling strong accumulation behavior.
ETF Outflows
Despite the whale activity, U.S. spot Bitcoin ETFs saw significant outflows. Between August 2 and 6, investors withdrew an aggregate of $554 million from these ETFs, according to Farside Investors. Market research firm 10x Research noted on August 8 that the absence of ETF buyers during this dip raises concerns about the market’s direction.
The recent surge in Bitcoin whale transactions highlights a period of intense accumulation amid the crypto market’s downturn. While whales are buying on the dip and moving assets off exchanges, the lack of interest from ETF investors points to potential uncertainties in the market’s future direction.
