‘Fish’, ‘sharks’ race to catch the bottom of Bitcoin

Tram Ho

“Fish” buy a lot when the price drops

When Bitcoin bottomed out at $32,000 on May 19 and crashed again on the night of May 21 and early morning, May 22, many bystanders joked about buying this virtual currency when the price dropped to $3,000. In fact, the data shows that there were many retail investors who bottomed when the market was red.

Citing data from Grassnode, analyst William Clemente III pointed out that, the more Bitcoin price tends to decrease, the higher the percentage of wallets holding the amount of Bitcoin from 0.01 to 0.1. This means that the fry are buying more than Bitcoin when the price drops.

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The percentage of Bitcoin holdings in the wallets of the fry has increased significantly.

Another metric from Cryptoquant shows that the difference in the flow of virtual money out of the exchange into cold wallets is about 4,000 Bitcoins. In other words, investors are withdrawing Bitcoin from the exchange to put more in the wallet than withdrawing from the wallet to put on the exchange.

Also according to Cryptoquant data, about 5.28 billion stablecoins (intermediate virtual currencies) were transferred to the exchange within 24 hours when Bitcoin hit its lowest bottom since February. This number is much higher than before. when Tesla announced to accept payment in Bitcoin. That is, investors are depositing more money to buy Bitcoin than ever before.

“Shark” also buy

Citing data from Chainalysis, economist Philip Gradwell estimated that sharks with at least 1,000 Bitcoin holdings since 2017 bought an additional 34,000 Bitcoin between May 18 and 19.

Compared to previous floor crashes, Chainalysis’s chart shows that sharks are buying into Bitcoin more than ever.

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Compared to previous floor collapses, the drop on May 19 saw sharks buying more.

Among the sharks, the most famous must be Justin Sun, who was chosen by Jack Ma. The young CEO bought 4,145 Bitcoins worth $152 million at an average price of $36,868 and 54,153 Ethereum worth $135 million at an average time of $2,509.

Next is MicroStrategy, which bought $10 million in Bitcoin just before the coin’s price drop. In total, the company owns 111,000 Bitcoins, according to CEO Michael Saylor.

MicroStrategy is a software technology company listed on the Nasdaq Stock Exchange. Thanks to investments in Bitcoin, its stock has skyrocketed from more than $200 in November 2020 to a peak of $1,272 in February, although it is currently holding around $450.

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The flow of stablecoins to the exchange’s wallets is also increasing.

Collectively, data from Glassnode shows that the volume poured into Bitcoin is at an all-time high, while in the opposite direction Ethereum is seeing more selling momentum.

The virtual currency market is still at the $ 1,500 billion mark in market capitalization after news that China will control cryptocurrency mining in this billion-people country. Bitcoin price is currently at $38,000 and Ethereum is at $2,300.

However, Bitcoin’s dominance rate has returned to the 45% mark, showing that the main cash flow is still in this coin. In the opposite direction, grass coins and junk coins are at a very low capitalization.

In addition, the capitalization of Tether (USDT) has also risen to the third highest in the cryptocurrency market, which shows that investors have a safe tendency to transfer virtual money to stablecoins to convert into dollars at any time. when.

Phuong Nguyen (composite)

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Source : Genk