Whales boost positions amid bitcoin correction

Against the backdrop of a bitcoin market correction, bitcoin whales have built up positions in the first cryptocurrency, while large Ethereum addresses continue to hold assets. Santiment analysts said as much.

👀 Eyes are on #Bitcoin and #Ethereum as the top assets in #crypto have shown further decline to start the week. Is it #buythedip time yet? $BTC‘s address activity is at near one-year lows, and $ETH‘s are as well. Read what our top indicators have to say. https://t.co/dqrxTktzbb pic.twitter.com/caXQkD49BQ

— Santiment (@santimentfeed) June 8, 2021

According to the company, the number of bitcoin addresses with balances of 100 BTC to 10,000 BTC has been rising steadily for two and a half weeks.

«Похоже, что киты уверенно покупают на падении», — заключили аналитики.

The NVT indicator points to a persisting bearish mood regarding the first cryptocurrency. On-chain activity is also declining — on June 5 the metric fell to its lowest since June 27, 2020.

The supply of digital gold on exchanges has declined after a substantial spike in the metric that occurred two weeks ago. Analysts view this as a bullish sign—the investors are withdrawing assets to store them securely in non-custodial wallets.

Analysts noted that large Ethereum holders show no intention of closing their positions. The number of addresses owning 1,000–100,000 ETH has hardly changed during the asset’s oscillation within the $2,000–$2,500 range.

«Эта группа инвесторов все еще держится за огромное количество токенов, которые они быстрыми темпами накапливали с октября прошлого года», — добавили специалисты.

The NVT indicator for Ethereum has, for the first time since April 2020, signalled a bearish mood among investors. Analysts also noted a decline in address activity on the Ethereum network, but not as pronounced as for Bitcoin.

The supply of Ethereum on cryptocurrency exchanges has hardly changed during the recent period of volatility. According to experts, many ETH holders have taken a wait-and-see stance, watching developments around digital gold.

According to journalist Colin Wu, exchange-traded funds from the investment firm Purpose Investments used the dip in cryptocurrency prices to build up positions.

Purpose Bitcoin ETF increased its holdings by 100 bitcoins, with a total holdings of 19508; Purpose Ether ETF increased its holdings by a total of 574, with a total holdings of 54520 ETH. Purpose is the world’s first Bitcoin and Ethereum ETF. pic.twitter.com/Gbt4UAeLFy

— Wu Blockchain (@WuBlockchain) June 8, 2021

Purpose Bitcoin ETF bought 100 BTC, bringing total holdings to 19,508 BTC. Purpose Ether ETF acquired 574 ETH — now holding 54,520 ETH.

Wu noted that Ark Invest ETFs are also expanding their positions. The investment company bought 18,746 shares of Grayscale Bitcoin Trust (GBTC) and 13,718 shares of Coinbase.

APK Ark Fund purchased 18,746 shares of GBTC and 13,718 shares of Coinbase yesterday. ARKW holds 7,441,692 shares of GBTC and 799,779 shares of Coinbase, accounting for 4.01% and 3.37%, respectively; APKK holds 3,134,630 shares of Coinbase, accounting for 3.44%.

— Wu Blockchain (@WuBlockchain) June 8, 2021

ARK Innovation ETF manages 7.44 million GBTC shares and 799,799 Coinbase shares; ARK Next Generation Internet ETF owns 3.13 million Coinbase shares.

While some whales are building up, other large Bitcoin holders—miners—are selling. Glassnode analyst William Clemente III noted that the balance of digital gold on their wallets declined by more than 5,000 BTC over the past week.

Miners have sold over 5,000 BTC in the last week pic.twitter.com/5pEvLgIls2

— William Clemente III (@WClementeIII) June 7, 2021

On June 8, the primary cryptocurrency fell to $33,000 after a prolonged period of price consolidation. As a result, the rest of the market also slid into the red.

Recall that tech analyst and head of Factor LLC Peter Brandt suggested that in the long term the market value of Bitcoin could rise to $100,000.