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Glassnode: Bitcoin Whales Bought Monday’s Price Dip

January 12, 2021 at 20:50 by Mark Stevenson

After trading above $38,100, Bitcoin (BTC) suffered heavy losses on January 11. As a result, the price of Bitcoin plummeted to $31,244 on Bitstamp. However, the drop in prices quickly attracted buyers.

Today, January 12, Bitcoin has managed to recover a little after yesterday’s fall. At around 20:11 GMT, Bitcoin is trading in the region of $34,300.

Bitcoin whales kept accumulating amid the recent drop

According to data from Glassnode, Bitcoin whales did not panic during Monday’s BTC price drop but accumulated the cryptocurrency.

The number of addresses holding more than 1,000 bitcoins rose to a new record of 2,140 as the cryptocurrency nosedived from $38,250 to $31,244. The volume of exchange trades on Monday exceeded the peak levels of 2017.

Source: Glassnode

In this situation, the increased number of Bitcoin whales shows the confidence of large investors in the short-term nature of the correction. Historically, gains were usually followed by pullbacks of 20% or more during bullish cycles. The ongoing bull market is boosted by institutional investors and this is in contrast to the 2017 situation when it was driven by the fear of losing out (FOMO).

According to Glassnode, the number of Bitcoin whales has increased by 25% over the past year. To be specific, the indicator has increased by 200 addresses over the past two weeks.

Moreover, during Monday’s BTC correction, there was a slight decrease in the number of addresses holding less than 0.01 BTC, from 8.54 million to 8.53 million. This indicates that some retail investors withdrew from the market.

According to Rafael Schulze-Kraft, the technical director of Glassnode, a short-term pullback in prices should not impact the confidence in Bitcoin’s long-term growth. The expert is of the view that new highs in a number of fundamental indicators keep the signal to hold coins.

In early December, Rafael Schulze-Kraft suggested that the price of one bitcoin could rise above $200,000.

Also, analysts from the American bank JPMorgan Chase & Co earlier predicted that Bitcoin price will surpass the $146,000 mark only with the high activity of institutional investors.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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