In a tumultuous week for cryptocurrency enthusiasts, the price of Bitcoin (BTC) has encountered substantial turmoil, plummeting at one point to a nadir of $25,400.
This stark decline can be attributed to a confluence of factors. Diminished market activity, coupled with the escalating turmoil in China’s real estate sector, has exerted downward pressure. Furthermore, recent reports indicating that Elon Musk’s SpaceX has offloaded a portion of its Bitcoin holdings have added to the cryptocurrency’s woes.
Nevertheless, optimism returned to the crypto market over the past 24 hours high-net-worth investors began accumulating the maiden cryptocurrency once again.
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To be more specific, BTC temporarily jumped to $26,800 on August 23, driven by a resurgence in activity among crypto whale and shark addresses – individuals or entities that hold large amounts of cryptocurrency that are capable of significantly influencing market trends.
According to cryptocurrency behavior analytics platform Santiment, “there are currently 156,660 wallets holding 10 to 10,000 BTC, and they have accumulated $308.6M since August 17th.”
These investors have collectively added 11,629 BTC over the past 6 days, Santiment highlighted.
Bitcoin price analysis
At press time on August 24, BTC was changing hands at $26,447, up 1.78% on the day. The largest cryptocurrency touched the $26,800 mark for a brief moment during this period, before slightly retreating.
Over the past week, the number one ranked crypto asset lost more than 7% and over 9.7% on a monthly basis, consequently losing over $50 billion in market cap during this 30-day period.
Still, Bitcoin remains deeply in the green territory on a year-to-date basis, surging around 60%.
Broader market still pessimistic
While the largest crypto investors have been c buying the recent dip in Bitcoin, the same cannot be said for the broader crypto scene.
Notably, the frequency of “buy the dip” mentions on social media, a strategy that involves buying undervalued assets has gradually decreased as crypto prices continued to drop and trading activity remained soft.
“We saw a huge rise in ‘buy the dip’ mentions. This indicates that trader optimism was quite high that there would be a quick market recovery, but looks at how the wishful thinking has died down considerably in the past few days.”
– Santiment noted.
The company collected data from platforms like Reddit, X, Telegram, and 4Chan to gather these insights. The decrease in mentions indicated traders’ diminishing confidence in a market rebound and the resurgence of pessimism, especially as market capitalizations declined.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
