Chainalysis Data Shows Hedge Funds Bought the Bitcoin Dip


Bitcoin and crypto market crash over the past couple of days saw nearly $500 billion getting wiped out of the crypto market cap as major cryptocurrencies fell over 30%. The Wednesday crash brought back memories of last year’s March mayhem when Bitcoin and altcoins fell over 50% in a single day. The market mayhem led to the liquidation of over $8 billion worth of leveraged positions as well. However, the price crash also brought a perfect investment opportunity and it seems Hedge Funds and big whales were the first to grab the opportunity.

As per Chainalyis data institutional investors bought the dip and also helped the free fall in price to rebound most of the losses within 24-hours of the crash. The data indicate these Hedge Funds and big players bought 34,000 Bitcoin on Tuesday and Wednesday after selling nearly $2 billion worth of Bitcoin holdings over the past two weeks.

Bitcoin and Crypto Market On-Road to Recovery

The major crash on Wednesday saw Bitcoin price fall to $30,000 levels while Ether price fell below $2,500 and both the top cryptocurrencies lost 50% of their entire market cap from the top. However, the market has bounced back strongly as BTC retraced to price levels above $42,000 while Ether bounced back near $3,000.

The current funding rates have also cooled down to negative levels which are considered bullish. The crypto analysts also pointed that the major panic selling came from short-term holders as the majority of long-term holders with over 1-year wallet holdings still continue to hold their Bitcoin. They also deemed these shakeups necessary to get away with weak hands. Apart from panic selling among small-time holders and whales, the malfunctioning of major crypto exchanges including Coinbase, Kraken, Binance, and Coinmarketcap also added to the misery since people were not able to access their accounts for buying the dip.

The post Chainalysis Data Shows Hedge Funds Bought the Bitcoin Dip appeared first on Coingape.


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