On Sunday, May 23, the crypto market suffered another major crash in a week’s time. The crypto market lost over 13% or $250 billion in the early hours as crypto market valuations tanked under $1.35 trillion. The Bitcoin (BTC) price crashed all the way going closer to its crucial support of $33,000. This market crash comes following China’s regulatory crackdown on crypto miners and traders in the country. Over the last week, Bitcoin has been breaking crucial support levels and moving south. But it doesn’t seem to have disappointed Bitcoin whales.
As of press time, Bitcoin (BTC) seems to have recouped from its Sunday bottom and trading at $33,440 with a market cap of $680 billion. Now, $35,000 remains crucial support at this stage.
At the same time, Ethereum (ETH) is 9% up in the last 24 hours after losing over $30 within a week and is trading at around $2,300.
Bitcoin Whales, Miners & Crypto Hedge Funds Keep Buying
It is true that at the start of May 2021, Bitcoin whales started depositing a massive number of Bitcoins at exchanges while systematically liquidating their holdings. As we can see on the monthly chart, the BTC price has crashed all the way from $59,000 to now under $35,000.
Citing data from Glassnode, Bitcoin evangelist Anthony Pompliano reported that the BTC whale addresses holding between 10,000 and 100,000 BTC have added 122,588 BTC during the first market crash last week on Wednesday, May 19. It means there a strong buying conviction from Bitcoin whales and big fishes of the market.
On the other hand, despite this strong correction, Bitcoin miners haven’t resolved to sell. Meaning, the BTC miners believe strongly in its future showing higher confidence. Popular trader Lex Mozkovski wrote:
“Bitcoin miners aren’t selling now. We had a small spike in selling pressure from them 3 days ago but it’s back to normal now. Data from both Glassnode and Cryptoquant. Whatever selling pressure we’re having now is completely on us”.
At the same time, crypto hedge funds have also started buying these dips. As Bloomberg reported, London-based MVPQ Capital and ByteTree Asset Management, and Singapore Three Arrows Capital bought the dips. Kyle Davies, co-founder at Three Arrows Capital, said:
“People that were borrowing money to invest, they were wiped from the system […] Every time we see massive liquidation is a chance to buy. I wouldn’t be surprised if Bitcoin and Ethereum retrace the entire drop in a week.”
Many analysts think that Bitcoin has entered a capitulation phase and will continue its consolidation for some time.