Whales are aggressively buying Bitcoin amid market dips, with 2024 exchange netflow data revealing record accumulation, indicating bullish investor sentiment.
Bitcoin Leaving Exchanges at Record Rates
Big, influential investors known as "whales" have been buying up Bitcoin at a rapid pace, according to new on-chain statistics from CryptoQuant.
An important metric known as the "exchange netflow" shows that in 2024, Bitcoin has been leaving exchange systems at historic highs. There has been a departure from exchanges of over 46,000 BTC, or over 2.6 billion USD, suggesting a preference for long-term storage.
Whales Bet on Bitcoin's Future Price Rise
According to Cointribune, the general consensus is that this pattern bodes well for Bitcoin's price. These "whales" appear to be placing bets on a price rise in the future, even as most investors are selling in a panic.
How will they approach it? Invest for the long haul and stay out of the volatile cryptocurrency industry.
There have been huge outflows of Bitcoin from derivatives exchanges as well as spot exchanges. It appears that investors are attempting to lower their risk exposure, based on this phenomenon.
Derivative outflows may not always portend a future sale, in contrast to spot platforms where deposits frequently precede sales.
Contrarily, whales may be moving their holdings to private wallets in the hopes of price stability or future price hikes.
Cautious Approach Reduces Market Volatility
Importantly, large-scale withdrawals of derivatives suggest a reduction in hazardous positions, which may reduce market volatility temporarily.
Stabilizing the market at times of extreme volatility, this move shows a cautious approach in light of the current uncertainty.
The fact that whales are showing increased interest in Bitcoin despite its collapse is a promising sign. Observing the market's development will be intriguing if these major investors are placing bets on a potential increase.