This week, BTC fell below the $30,000 psychological level in the wake of widespread fears over UST’s de-peg from the dollar. This carnage has persisted with traders fearing that other major stablecoins could follow a similar path. On Thursday, USDT, which is the world’s biggest stablecoin suffered the same fate after dropping to as low as $0.95 on some exchanges.
In the wake of this “speculation derived fear,” Bitcoin has ceded and currently trading at $28,991 after briefly plunging as low as $26,700 Thursday morning. The $28,000 level is considered a highly decisive area seeing that price bounced off of that area last year before pulling a sustained bull turn to $64,000.
That said, the recent drop seems to have fuelled a high level of activity among bitcoin whales who are now busy buying the dip.
“There is clear evidence that Bitcoin whale addresses are viewing BTC’s drop below $30k as an event to accumulate. Santimentfeed saw the highest amount of transactions exceeding $100k since January, and their supply of BTC held is rising.” Santiment feed wrote after Bitcoin plunged below $30,000.
In another tweet on Wednesday, Santiment reported that the amount of Bitcoin moving between addresses daily had climbed above 300k this week.
“ We haven’t seen this level of activity on the BTC network since February. Bulls and bears are the most polarized we’ve seen in some quite while” Santiment wrote.
This level of on-chain activity has also been mapped out on the Ethereum network with transactions exceeding $1M being conducted in a single day, the highest since January .
However, on Wednesday, crypto analytics firm CryptoQuant shared a chart showing that the BTC Exchange Whale Ratio had hit a 4.5-year high of 72H SMA. The exchange whale ratio is the relative size of the top 10 inflow transactions to total inflow. In a bull market, it often keeps below 85% while in a bear market, it keeps above 85%.
The firm has warned of an imminent drop should this ratio keep rising , as witnessed before the 2018 mega dump. According to pseudonymous Twitter quant “IT Tech” small-term holders and a portion of long-term holders are in panic mode and are selling into a loss.
“Only LTH who HODL Bitcoin over 18M is selling profit until price is under $13k.” the analyst tweeted today. “Final capitulation in progress. When the price is under-we are entering a bear market phase.”