With on-chain data showing the small guys have accumulated an additional 12,000 Bitcoin (BTC) in the last month, many retail Bitcoiners bought the dip amid this week’s crypto market bloodbath.
The number of entities holding between 0.01 and 0.1 BTC surged as BTC’s price dropped, according to Analyst William Clemente III shared data compiled by on-chain analytics provider Glassnode.
Shared data showing a net outflow of roughly 4,000 BTC (approximately $163 million) from centralized exchanges, according to Crypto market data aggregator CryptoQuant.
Net outflows to centralized exchanges are typically inferred to suggest coins are being moved into secure storage after being accumulated, while net inflows suggest coins are being moved out of cold storage to be sold on exchanges.
The weekly netflow suggests this shift from selling to buying occurred only in the last two days.
Chainalysis chief economist Philip Gradwell noted that whales with at least 1,000 BTC accumulated after 2017 had bought 34,000 BTC between Tuesda, suggesting many of these whales believed the bottom had hit or was near.
Clemente III also noted a massive spike in OTC Bitcoin outflows since Tuesday, which he believes evidences significant buying from institutions or high-net-worth individuals. Morgan Creek Capital Management founder and CEO Mark Yusko shared Clemente III’s tweet, hinting that now is not the time to panic sell:
“Remember before you hit the panic sell button, there is always a buyer on the other side… ask yourself, what do they know that I might not…?”
Moskovski Capital chief investment officer Lex Moskovski also believes many investors are now buying, tweeting: “$5.28B of stablecoins were deposited to exchanges in 24h. This is absolute ATH. Even bigger than pre-Tesla announcement move. Lots of people bought the dip.”