Hello my fellow bloggers! Today I want to talk about recent deep. With no surprise, we saw the same old picture again: new small investors were selling on panic often taking losses while large investors were buying crypto at a good price. Let’s dive in and study some charts.
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Bitcoin dropped significantly in just hours taking the whole crypto market with it. It was hard to watch your portfolio losing blood. Those of us who survived a few years on this market are more or less immune for such events. We believe in crypto, we have our investment plan in place and we are ready to hold the deep. At the same time people new to the market are not that emotionally stable. To tell the truth, even a long term investors were panicking, thinking we are seeing early 2018 all over again… If you look at the chart below, BTC sell off looked pretty bad.
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You can see a large spike of BTC inflow to exchanges we haven’t seen for several weeks. Even some wallets that haven’t moved BTC since 2010 suddenly moved it to exchanges. There is no surprise the price dropped so fast. Yet now we can see the opposite (highlighted spike). We see a good amount of BTC moving out of exchange wallets. The question is, who was smart enough to buy BTC under 50k? Maybe it was a well-known trust like Grayscale?
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Yes Grayscale was buying, but a very small amount – 137 BTC. It seems it was more focused on ETH – over 15,5k ETH were bought. A smart move as we are slowly moving towards another altseason, according to the corresponding index. Anyway, let’s get back to BTC. Usually, large companies buy BTC using CoinBase. Looking at the chart, we see the following:
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As you can see, some company bought more than 13k BTC at price 48.946k. In other words, someone invested around 655m USD in BTC during recent deep. Smart money buy in when the market is in red. We all need to learn to do the same (not a financial advice).
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Disclaimer
I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose.
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