The cryptocurrency market has experienced recent volatility, with Bitcoin dropping below $100,000 and several altcoins, including Ethereum, Hyperliquid, Cardano, and Virtuals, declining between 20% and 30%. Despite this, large investors known as whales and institutional buyers are actively accumulating assets.
Bitcoin wallets holding 10 or more BTC have increased, while smaller wallets have diminished, signaling significant accumulation by strong hands. This shift occurs as retail investor confidence weakens, setting the stage for potential bullish momentum.
Major firms such as MetaPlanet and a prominent French company are expanding their Bitcoin reserves. MicroStrategy recently added $26 million worth of Bitcoin, and spot Bitcoin ETFs have purchased nearly $1 billion over two days, with $589 million in net inflows reported on June 24 alone. These ETF purchases outpace the weekly mined supply by three times, indicating a looming supply shortage.
Among altcoins, Chainlink (LINK) is seeing notable buying despite typical price declines after token unlocks. LINK’s price rose 11%, accompanied by a record 769,380 holders. Additionally, active wallets have decreased by 17.3% over the past year, suggesting that long-term holders are seizing this opportunity. Chainlink is recognized for its role in real-world asset infrastructure and cross-chain communication, supported by a committed community.
Cardano (ADA) has also attracted significant investment, with $310 million accumulated in June primarily by large investors. The steady acquisition reflects confidence in Cardano’s long-term prospects, aided by founder Charles Hoskinson’s collaborations with major crypto projects like Bitcoin and XRP.
According to Santiment data, 94.5% of Bitcoin’s supply is currently in profit, compared to 59.4% for Chainlink and 46.5% for Cardano. The lower percentage for Cardano may indicate undervaluation and potential for growth should market conditions improve.
- Why are whales buying despite dips? They view current volatility as a prime chance to accumulate assets ahead of a possible market recovery.
- What does large wallet accumulation signify for Bitcoin? It suggests consolidation among strong holders, often preceding price increases.
- How do corporate Bitcoin purchases affect price? Corporate buying, particularly through ETFs, increases demand and reduces circulating supply, influencing price positively.