Market declines often present themselves as an opportunity for traders to get into the market at a discount. A Bitcoin whale said to own the third-largest Bitcoin wallet has taken advantage of the current dip to buy more of the flagship cryptocurrency. According to reports, his latest purchase is almost 500 BTC valued at $23 million.
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Reports emerged that the Bitcoin whale made the BTC purchase on Wednesday, September 8, as most cryptocurrencies continued to trade at a low after things unexpectedly crumbled by mid-Tuesday. The Bitcoin whale had bought the 490 BTC when the top crypto asset was changing hands at a low of $46,800, 10% below Bitcoin’s $51k price earlier on Tuesday.
Coinbase Facilitates Latest Bitcoin Whale Purchase
His latest purchase was made on US-based crypto exchange Coinbase before moving the stash over to a digital wallet as is the practice of most Bitcoin whales. Every purchase is usually followed by a subsequent transfer of these assets to digital wallets. After waiting for as long as they deem fit, often in the event of a price increase, they transfer part or all of their holdings to exchanges to initiate a sell-off.
As of the time of writing, the whale has added 4000 more BTC to his holdings. This dwarfs the amount of BTC he had in possession when the price of the crypto asset was still trading at an ATH of $65k as of April. The cumulative value of BTC holdings is $5 billion.
In August, the Bitcoin whale acquired more Bitcoin of varying amounts at two different periods. At the time, Bitcoin was yet to make the move to the four-month high of $52k. On August 26, he purchased 38 BTC. The following day, he bought 466 Bitcoin bringing the total value of both purchases to $23 million. Coinbase exchange had facilitated the purchases as well.
El Salvador Bitcoin Adoption Fails to Generate Momentum for a Bull Run
The whale’s latest buy coincided with El Salvador’s Bitcoin law which became effective on September 7. With high expectations that the El Salvador effect will expedite the bullish momentum in the market, the global crypto community was disappointed when things took a turn for the worse. Even the double purchase of Bitcoin- 400 and 150 BTC- as announced by president Nayib Bukele
The sudden market downturn left losses running into billions of dollars in its wake. As per available data, about $2.8 billion worth of longs in the futures market had been liquidated across various crypto exchanges. Market capitalization cowered to the decline and shed about $330 million off of the top.
Altcoins faced the same pressure and succumbed to it without resilience. Amid all the volatility, Solana stayed strong moving to a high of $215. However, the resilience would not last for too long as Solana moved to a low of $170 on Friday.