Cryptocurrency "whales" purchase volatility as regular investors pull back
Bitcoin's swift descent from $97,000 to $87,000 within a matter of days has rattled the market, leaving bulls on the back foot. This downturn coincided with a surge in geopolitical friction between the US and EU this week, marked by renewed trade-war talk and uncertainty surrounding potential retaliatory measures,
Despite this negative sentiment, on-chain data suggests the market structure is changing, not disintegrating. Bitcoin whales have been quietly accumulating spot supply during these corrective periods since January, even as price movements have slowed.
Meanwhile, retail investors appear to be pulling back in the wake of the price drop, resulting in decreased market activity and participation.
Smaller traders often get spooked by short-term fluctuations, while larger investors see volatility as an opportunity to buy in at lower prices.
Bitcoin's price is currently finding its footing in a critical psychological zone, but we'll need to see a resurgence in demand to determine if this is just a temporary dip or the beginning of a more significant decline.
Bitcoin Battles to Maintain $90K as Whales Accumulate
Bitcoin is striving to stay above $90,000 as volatility increases and traders seek stability after the recent price drop. Price movements have become more sensitive to macroeconomic news, and the $90K psychological level could be the key to whether the market consolidates or continues to fall.
Conversely, major holders have been increasing their exposure, which supports the notion that the current phase is one of structural accumulation rather than widespread distribution.
This is significant because persistent whale purchasing during market dips suggests a less robust supply absorption, which in turn reduces the chances of a sell-off triggered by spot sellers.
Despite market turbulence, whale confidence remains intact. Unlike typical investors who tend to cut back during periods of volatility
