Bitcoin fell in the first week of July to a low of $54,000 amid heavy selling by some large holders. Various reports using on-chain data have blamed the sell-off on the German state of Saxony, which sold off bitcoins it had seized earlier in the year.
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Despite this massive sell-off, Bitcoin has maintained its position in the first place, and bulls have managed to prevent further price declines. According to on-chain data, Bitcoin’s declining position can be attributed to some whales, many of whom jumped on the price drop to increase their holdings. Notably, Bitcoin whales have added 71,000 BTC to their wallets this week.
Bitcoin Whales Acquire 71K Bitcoin This Week
This week, Bitcoin whales went on a cryptocurrency binge, scooping up 71,000 BTC from crypto exchanges. While the German state of Saxony was busy selling its crypto holdings, these big players were more than happy to add to their already massive holdings.
This interesting whale activity was first noticed on social media platform X by In the massA look at the chart below shows that the accumulation peaked during Bitcoin’s 15% drop from $63,600 on July 1 to $53,905 on July 5.
In addition to the whale accumulation, Bitcoin spot ETFs saw steady inflows during the week despite the spot price decline. Recorded positive net flows Daily throughout the week, with the largest net inflow of $310 million on July 12.
Bitcoin is holding up
The German state of Saxony sold over $2 billion worth of bitcoin last week, flooding the market with bitcoins. When the selloff first began, many traders and market participants were skeptical about whether the already-slumping bitcoin could survive the selling pressure. Many analysts even predicted a drop to $47,000. Other analysts, on the other hand, believed the selloff was overdone.
Despite this volatile landscape, Bitcoin managed to weather the sell-off and absorb the impact of the sell-off better than many expected. This showed that the cryptocurrency has now stabilized, preventing further price declines.
It also highlights the growing maturity of the cryptocurrency market, which has been marked by high levels of volatility over the years. The sale of $2 billion is very small compared to Bitcoin’s market cap of $1.18 trillion. When broken down, $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 looking for another break above $60,000. A break above $60,000 and a solid hold above it would pave the way for further price gains in the coming week.
Featured image by Getty Images, chart by TradingView