Blockchain insights platform Chainalysis is revealing that large investors purchased tens of thousands of Bitcoin as the largest crypto asset by market cap tumbled below $40,000.
In the blockchain analysis firm’s latest market intelligence report, Chainalysis discloses that as some investors exited their positions at a loss, Bitcoin whales bought massive amounts of BTC at the height of the crypto correction.
“So last week was challenging for everyone in crypto and some investors incurred large losses. But the industry appears to be responding and most investors remain confident. For example, investor whales bought the dip, buying 77,000 Bitcoin last week.”
At the time of writing, Bitcoin is trading at $37,000, giving the whales’ huge purchase a value of around $2.85 billion.
Chainlysis adds that 1.2 million Bitcoin was sold at a loss of between 5% and 25%. Another 120,000 Bitcoin was sold at a loss of 25% or more. The blockchain analysis firm estimates that the majority of the selling came from short-term holders.
“For Bitcoin, at least $3.2 billion was lost last week. This is just for Bitcoin that was held for at least four weeks prior to being sent, a restriction that increases the certainty that these are real losses. Almost all of this $3.2 billion loss was incurred by Bitcoin held for between 4 and 13 weeks, suggesting that recent investors were major sellers.”
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