Bitcoin Whales Acquire 71,000 BTC This Week

Bitcoin went on a downward spiral in the first week of July to strike a bottom below $54,000 amidst an exacerbated selloff by some large holders. Various reports using on-chain data have blamed the selloffs on the German state of Saxony selling the bitcoins it seized earlier in the year.

Bitcoin price dropped below $54,000 in the first week of July as a large holder sold off a significant amount of BTC. Several reports using on-chain data have attributed the selloffs to the German state of Saxony selling the bitcoins it seized earlier in the year.

However, Bitcoin has largely managed to hold its ground with bulls stepping in to prevent further price drops. According to on-chain data, Bitcoin’s standoff can be attributed to some whales as many of them used the price decrease to top up their holdings. Notably, Bitcoin whales added 71,000 BTC to their wallets this week.

Bitcoin whales went on an accumulation spree this week, snapping up a total of 71,000 BTC from crypto exchanges. While the German state of Saxony was offloading its crypto stash, these big players were happy to add to their already massive holdings.

This interesting activity by the whales was first highlighted on social media platform X by IntoTheBlock. As seen in the chart below, the accumulation was at its peak during Bitcoin’s 15% drop from $63,600 on July 1 to $53,905 on July 5.

Moreover, Spot Bitcoin ETFs saw steady inflows during the week despite the decline in the spot price. The funds recorded positive net flows every day during the week, with the largest net flow of $310 million on July 12.

Bitcoin holds up

The German state of Saxony sold more than $2 billion of Bitcoin last week, flooding the market with a lot of BTC. When this selloff first began, many traders and market participants were skeptical whether an already bearish Bitcoin could withstand the selling pressure. Several analysts even anticipated a price drop to around $47,000. On the other hand, some analysts felt that the selloff was being overblown.

However, Bitcoin managed to weather the selloff and absorbed the impact of the sale better than most expected. This indicated that the cryptocurrency has now attained stability, preventing further price declines.

It also highlights the growing maturity of the crypto market, which has been known for a high level of volatility over the years. A $2 billion selloff is very small compared to Bitcoin’s market cap of $1.18 trillion. To put it in perspective, that $2 billion is less than 0.2% of Bitcoin’s total market capitalization.

At the moment, Bitcoin is trading at $59,960 with bulls now aiming to break back above $60,000. A break and hold above $60,000 will pave the way for further price gains next week.

Featured image from Getty Images, chart from TradingView