Bitcoin went on a downward spiral in the primary 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 within the yr.
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Despite this considerable selloff, Bitcoin has primarily held its ground, and bulls have been successful in stopping additional price drops. In accordance with on-chain data, Bitcoin’s standoff will be attributed to some whales, as lots of them jumped on the worth 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 greater than joyful so as to add to their already massive holdings.
This interesting activity from the whales was first noted on social media platform X by IntoTheBlock. A have a look at the chart below shows that the buildup was at its peak during Bitcoin’s 15% drop from $63,600 on July 1 to $53,905 on July 5.
Along with the whale accumulation, Spot Bitcoin ETFs witnessed regular inflows throughout the week despite the decline within the spot price. The funds recorded positive net flows day-after-day throughout the week, with the biggest net flow of $310 million on July 12.
Total crypto market cap currently at $2.1 trillion. Chart: TradingView
Bitcoin Holding Up
The German state of Saxony sold over $2 billion price of Bitcoin last week and flooded the market with many BTC. When this selloff initially began, 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. Then again, 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 higher than many would expect. This showed that the cryptocurrency has now achieved stability, stopping further price declines.
It also highlights the growing maturity of the crypto market, which has been characterised by a high level of volatility over time. A $2 billion selloff could be very small in comparison with Bitcoin’s market cap of $1.18 trillion. To interrupt it down, that $2 billion represents lower than 0.2% of Bitcoin’s total market cap.
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On the time of writing, Bitcoin is trading at $59,960. The bulls are actually setting their eyes on breaking above $60,000 again. Breaking and holding above $60,000 would set the stage for an extra price increase in the approaching week.
Featured image from Getty Images, chart from TradingView