Opinion: Whales Used the Correction to Buy Bitcoin

Hedge funds and asset managers were the main buyers of bitcoin during its slide to $30,000, according to Julian Emanuel, a strategist at BTIG, in a interview CNBC.

According to him, a 30% decline in bitcoin’s price signalled to many large investors that it was time to buy.

“A strong bounce from the $30,000 level suggests that bitcoin continues to be viewed as a viable alternative in a diversified portfolio,” Emanuel said.

Genesis Global Trading sent the same information to its clients, The Block reports. The document says that large investment funds began buying bitcoin after the drop below $35 000.

Sam Trabucco, a market-maker at Alameda Research, said that there was a large bet on bitcoin during the correction. He noted that cascading liquidations affect the market’s natural moves:

“No one wanted to sell as low as they had to. That means that once the market gets a chance to gather collateral, it must rebound. It usually happens quickly – from a few minutes to hours depending on the size of the move.”

Trabucco added that yesterday offered many opportunities to profit for those with spare capital.

On May 19, bitcoin traded as low as $30,000 for the first time since January 2021.

According to Glassnode analysts, the correction was driven by panicked selling from short-term investors, while long-term buyers were buying “at the bottom”. As of now, hodlers hold 58% of the coins in circulation.

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