Many high volume Bitcoin transactions have taken place after the cryptocurrency plummeted. This could be a sign of a new bull run.
On February 24, when Russia attacked Ukraine, the Bitcoin price immediately fell deeply, below the $ 35,000 mark. However, contrary to the speculations of many investors, the cryptocurrency market recovered quite strongly in the following 2 days.
Notably, according to data from analytics platform Santiment, Bitcoin “whales” appear to have taken advantage of this volatile period to execute a large number of trades despite the bottoming price.
Specifically, the trading volume above 100,000 USD and 1 million USD both reached their peak year-to-date. Previously, on January 24, “whales” also made a similar move when buying Bitcoin in large quantities when the price was bottoming. Just a few days later, the price of BTC bounced back rapidly.
Bitcoin price is about to increase sharply, Bitcoin, Whale Photo 1
Trading volumes above $100,000 and $1 million hit their highest levels this year. Photo: Santiment.
“In light of the hostilities in Ukraine and the Bitcoin price bottoming at $34,700, the whales made some huge trades. As of January 24, this is the largest amount counted in both over 100,000 and over 1 million USD transactions. After the 'whales' bottomed in late January, the price of Bitcoin immediately increased by 15% the following week,” Santiment said on Twitter.
In fact, tracking "whales" is a fairly common tactic for individual investors today. They often make decisions quite similar to large investment funds to limit the risk of loss. Therefore, when large amounts of Bitcoin are bought by funds, retail investors often make similar decisions and push the price up.
In addition, the Bitcoin price also had a relatively good recovery after US President Joe Biden announced sanctions against Russia. According to Alex Mashinsky, CEO of Celsius Network, the ongoing conflict between Russia and Ukraine is acting as a catalyst for Bitcoin to establish support at $30,000.
Besides, according to Finbold author Jordan Major, Bitcoin price falling below $35,000 has become a really good opportunity for newcomers to the cryptocurrency market. In the same vein, Bloomberg analyst Mike McGlone thinks the sharp drop is a pivotal moment for digital assets.
“I think this is the last good opportunity to buy Bitcoin for long term investors. It will be looked back on as a defining moment,” said Mike McGlone.
In light of the bad situation between Russia and Ukraine, the cryptocurrency market seems to be starting to regain its footing. Currently, according to CoinMarketCap morning data, Bitcoin is trading above $39,000 and continues to show signs of improvement.