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.
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Despite this considerable selloff, Bitcoin has primarily held its ground, and bulls have been successful in preventing additional price drops. According to on-chain data, Bitcoin’s standoff can be attributed to some whales, as many of them jumped on the price decrease to top up their holdings. Notably, Bitcoin whales added 71,000 BTC to their wallets this week.
Bitcoin Whales Acquire 71,000 BTC This Week
This week, Bitcoin whales went on an absolute feeding frenzy by accumulating a whopping 71,000 BTC from crypto exchanges. While the German state of Saxony was busy offloading its crypto stash, these big players were more than happy to add to their already massive holdings.
This interesting activity from the whales was first noted on social media platform X by IntoTheBlock. A look at the chart below shows that the accumulation was at its peak during Bitcoin’s 15% drop from $63,600 on July 1 to $53,905 on July 5.
In addition to the whale accumulation, Spot Bitcoin ETFs witnessed 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 Holding Up
The German state of Saxony sold over $2 billion worth of Bitcoin last week and flooded the market with many BTC. When this selloff initially started, many traders and market participants were skeptical about whether an already bearish Bitcoin could survive the selling pressure. Many analysts were even anticipating a price decline towards $47,000. On the other hand, other analysts believed that the selloff was exaggerated.
Despite this back-and-forth scene, Bitcoin managed to scale through the selloff and absorb the impact of the selloff better than many would expect. This showed that the cryptocurrency has now achieved stability, preventing further price declines.
It also highlights the growing maturity of the crypto market, which has been characterized by 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 break it down, that $2 billion represents less than 0.2% of Bitcoin’s total market cap.
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At the time of writing, Bitcoin is trading at $59,960. The bulls are now setting their eyes on breaking above $60,000 again. Breaking and holding above $60,000 would set the stage for a further price increase in the coming week.
Featured image from Getty Images, chart from TradingView