Chainalysis report, say whales bought US$3.2 billion in Bitcoin
According to the Chainalysis report, the last drop in prices has caused a considerable amount of bitcoins to be sold at a loss.
Did you sell Bitcoin the last fall?
Congratulations, you helped whales (big holders) to accumulate more bitcoins – probably the same bitcoins you should buy back from the same whales when the price goes up again.
The chief economist at the data analysis firm, Philip Gradwell, said that “investing whales” bought 77,000 bitcoins in the period, an amount valued at more than US$3 billion at the current price.
Last week, the price of Bitcoin fell from US$50,000 to US$30,000, which was prompted by a “panic sell” (panic selling) largely by younger investors in the market.
The report by Chainalysis and The Block shows that the big players, hedge funds, and asset managers were buying this fall, mostly in the US$35,000 range.
Noobs sell at a loss
On May 19, Bitcoin fell below the US$40,000 support and pulled the entire market together. The price then hit the US$30,000 mark, but later corrected to more than US$36,000.
According to the Chainalysis report, this drop in prices has caused a considerable amount of bitcoins to be sold at a loss.
Gradwell stated that 1.2 million bitcoins were sold at a loss of 5 to 25%, and 120,000 bitcoins at a loss of 25% or more.
The average price of a Bitcoin has been set at around US$37,000. This figure is the average purchase price of Bitcoin last year.
However, the same figure has not remained in the range within the recent market turmoil, but it appears to be recovering.
Despite this, several investors consider the past week to be the worst so far. More than $ 3.2 billion in Bitcoin was sold at a loss in the period.
“This was a smaller number of bitcoins sold at a loss than in the price drops of late 2017 and mid-March 2020, suggesting that last week was not the worst capitulation of holders in the history of bitcoin, ” he said.
Ethereum also recorded a similar story, with more than 22.6 million ethers sold at a 5 to 25% loss. But, according to reports, the percentage of losses in Ethereum was not so great.
Ethereum, therefore, remains on the safer side, as its average price of US$1,709 has not yet been reached.
Gradwell believes that, according to the nature of Bitcoin and Ethereum, their values would always maintain their cost price (mining process), unless a similar occurrence, such as that which occurred in 2018, occurred again.
Disclaimer: The information expressed in this article are solely those of the author and do not necessarily reflect the views of CryptoDeFinance. Each and every investment and trading move involves high risk. You should always conduct your own research when making a decision in crypto investment. *with information from Livecoins, Twitter