Bitcoin price recently suffered another crash that sent the price of the asset dropping towards the low $40,000s again. This one, however, has been significant in its cash and recovery patterns, and subsequent on-chain data suggests that this most recent crash may have worked in the favor of the digital asset. This is because interest returned in the pioneer cryptocurrency after its price fell low enough to a point that investors deemed it a buy opportunity.
The crash was also significant in how much it took off the market. Although lasting only a couple of hours in the early morning of Saturday, the crash had cleared about $150 billion off of the total market cap. Dragging the market cap to month-lows. Bitcoin’s value suffered tremendously for this crash, as did the altcoins, but an interesting aftereffect has been the increased number of small-time investors trooping back to stock up on the digital currency.
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Addresses With 0.1 BTC Shoots Up
In an interesting turn of events, the market crash which would have normally led to a sell-off had triggered renewed interest from mostly small-time holders. These holders are investors with at least 0.1 bitcoins in their balances or approximately $4,300 worth of BTC. Data show that as the price had crashed on Saturday, the number of small-time holders buying more BTC shot up, leading to an increase in the number of addresses holding at least 0.1 BTC.
Wallets holding at least 0.1 BTC shoots up | Source: Glassnode
This renewed interest and buying on the part of these investors pushed the number of addresses holding at least 0.1 BTC in their balances to hit a new four-month high. Given that bitcoin price had suffered in the recent months, this number had dropped to new lows. But now, in an ironic twist, another crash was all it took to get the number back up. The current count for the number of holders with at least 0.1 BTC in their balance has now gone up to approximately 3.25 million holders.
Whales Also Loading Up On Bitcoin
The returns on bitcoin have unfailingly been impressive year over year. This is why it is usually the first point of contact for new investors coming into the crypto market. But that does not mean the “old hands” have left the market either. Bitcoin is the most accumulated cryptocurrency in the market and at the top of the accumulation pyramid are the whales.
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The whales who hold at least 100-10,000 BTC on their balances have been accumulating coins with each market crash. The present crash presented another opportunity for maximalists to increase their bags. A drop this close to $40,000 put immense buy pressure on the market. Thus presenting investors an opportunity to accumulate more coins before the market recovered again.
BTC price trading close to $44K | Source: BTCUSD on TradingView.com
Bitcoin price has now recovered from its low of $40,800 in the crash that occurred on Saturday. With increasing momentum brought on by low volatility experienced on weekend, the digital asset has climbed back up above $43,000 again. But recent crashes have ended with lower highs and the recovery trends of this crash point at it following in the footsteps of its predecessors.
Featured image from ROInvesting, charts from Glassnode and TradingView.com