Large bitcoin (BTC) investors, popularly known as whales, look to have bought Monday’s price dip, indicating confidence in the ongoing bull market.
The number of bitcoin “whale entities” – clusters of crypto wallet addresses held by a single network participant holding at least 1,000 BTC – rose slightly to a new record high of 2,140 on Monday. The increase came even as the cryptocurrency’s price collapsed by more than 20 percent to hit a low of $30,305.
The violent sell-off was fueled by heavy selling in the spot market and was accompanied by record trading volumes.
That, however, did not deter big players from accumulating the cryptocurrency, which rallied by 300 percent in 2020 and hit a record high of $41,962 over the weekend.
The dip demand suggests that large investors expect the pullback to be short-lived. The cryptocurrency has seen corrections of more than 20 percent during previous bull markets.
Further, the latest bull market is backed by institutional money, compared to previous ones which were more speculative frenzies. As such, occasional price drops are unlikely to scare away the whales.