Earlier this week the crypto market saw the price of crypto assets do a sharp decline as investors took a more cautious stance amid the decline in global equity markets.
The turmoil in the Chinese real estate market related to developer Evergrande over the course of the day has pushed the price of Bitcoin to have lost 10% and traded at $ 42,634 based on Coin Metrics. The same fate befell other crypto assets. Ethereum on the other hand has fallen 12% to $ 2,985.95.
The fall has drawn various interpretations among investors. Some took a cautious stance, some panicked and some saw it as an opportunity. This is even more pronounced when the Bitcoin Fear and Greed Index shows an ‘extreme fear’ reading.
However, some investors, especially in the ‘whale’ investor group, see this as an opportunity. There are reports that one of these whales has bought 321 bitcoins in the last two days and increased today’s BTC holdings by 408 BTC.
This group of whale investors has amassed 321 Bitcoins at an average price of $ 40,500. Data in the chain showed that they made a big purchase a few hours later after BTC posted a daily low of around $ 39,600.
Today, the whale group added another 408 bitcoins worth less than $ 18 million. This indirectly the BTC holding for this ‘single address’ has increased to 112,202.59 bitcoins. In other words, this stash is worth $ 5 billion.
It should be noted that certain groups of whales like this are among the most active in making purchases and sales depending on price movements. Therefore, it is not surprising that some traders also make the 'whale' movement as one of the indications to take a trading position.
Today, the Crypto Market has recovered $ 200 billion in a day with the BTC price at $ 44,000. This is because there are reports that the Chinese government will take part to address the Evergrande issue.
The market’s focus now is on price movements in the hope that the BTC price can bounce back to the $ 47,000 price level.
