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June 30, 2022
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Bitcoin

Whales buy inexperienced BTC sell

While whales buy inexperienced BTCs they sell without understanding what is going on.

It is not just today that we see the market correct and then continue to devalue assets. In the vast majority of cases, this happens because of investors who are not acculturated to the market where they are inserted, mainly in the case of crypto, where the market itself is already more volatile and of greater risk. Obviously we also have some market manipulations or attempts at it, as happened in the midst of China’s announcement of a major crackdown on Bitcoin miners, the crypto showed very high volatility dropping twice below the $ 35,000 levels in a week.

However, as it happens during any market correction, the Bitcoins they pass from weak to strong hands. After systematically liquidating its stake until the first market crash on May 17, whales have turned the tide and are buying again. Chainlaysis chief economist Philip Gradwell identifies the clear reversal of the trend. Although, settlements have been greater than accumulation so far.

In addition, Gradwell points out that the rate of Bitcoin deposits on exchanges decreased during the fall of Friday (May 21), compared to the fall of the market on Wednesday, May 19.

The panic among short-term Bitcoin investors

When investing in markets, experience is the greatest teacher! This is clearly seen with short-term investors recording large losses. As Glassnode reports, big sales were made by short-term investors who bought in the past few months.

Strong settlements in the Bitcoin futures market were also recorded during the recent price correction. In the past few hours, more than $ 7.5 billion in open Bitcoin futures contracts have been settled.

The great news is that the recent market volatility has not disturbed major institutional players. After the recent crash, the CEO of exchange Geminin, Tyler Winklevoss, tweeted that institutions continue to buy in the falls.

It will be interesting to see how the BTC will move from here.

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