{"id":43323,"date":"2021-05-27T18:21:11","date_gmt":"2021-05-27T15:21:11","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=43323"},"modified":"2025-08-31T03:07:39","modified_gmt":"2025-08-31T00:07:39","slug":"chainalysis-bitcoin-whales-used-market-downturn-to-bolster-positions","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/chainalysis-bitcoin-whales-used-market-downturn-to-bolster-positions\/","title":{"rendered":"Chainalysis: Bitcoin whales used market downturn to bolster positions"},"content":{"rendered":"<p>Large investors used last week&#8217;s plunge in bitcoin prices to increase their positions. The whales bought 77,000 BTC, according to analytics firm Chainalysis.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">Read the full Report at <a href=\"https:\/\/t.co\/ci1lk8a9ib\">https:\/\/t.co\/ci1lk8a9ib<\/a><\/p>\n<p>\u2014 Philip Gradwell (@philip_gradwell) <a href=\"https:\/\/twitter.com\/philip_gradwell\/status\/1397859247304679428?ref_src=twsrc%5Etfw\">May 27, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>On May 19, the first cryptocurrency <a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-price-falls-below-35000\">fell below the support level around $40,000<\/a>, dragging the rest of the market lower. At one point, the price of digital gold touched $30,000, but then recovered to above $36,000.<\/p>\n<p>According to Chainalysis senior economist Philip Gradwell, during this period 75% of transfers went to crypto exchanges from other trading venues. This points to activity by market makers and arbitrage traders. Miners accounted for only 1% of inflows.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/mfcuQyqqAvOJJJYVXvXQLLl45E_g-SkV2nMXtHp-aS_HmPHmNZK9XMpJszsvM0fS48o40H24NcpogXVZEKrajyG7IxjUpi7zDpYNqlSdtv9YiAZ_OitydAspRROkgK2tZln_LAwk\" alt=\"Chainalysis: Bitcoin whales used the market drop to build positions\"\/><figcaption>Source: Chainalysis.<\/figcaption><\/figure>\n<p>The market drop led to 1.2 million BTC entering exchanges with losses of 5% to 25% compared with the price at the moment they were credited to holders\u2019 wallets. Investors also sold 120,000 BTC at losses of 25% or more.<\/p>\n<p>Gradwell stressed that the total number of loss-making bitcoin sales was lower than at the end of 2017 or in mid-March 2020.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/-_L_RMO4ZuUBrxVsax83XtOvoejN3n1v33TToljPx9DiU0Rb-vqlj3Li9qO36vNaOrxpQqCu0G6EZrY2pdvZ-MdwMoMS2dhUfzGvHEL0IZst66KX4vwFrwqrO6VjprkBjj9UiPAO\" alt=\"Chainalysis: Bitcoin whales used the market drop to build positions\"\/><figcaption>Source: Chainalysis.<\/figcaption><\/figure>\n<p>In the Ethereum network, by contrast, the number of loss-making transactions reached a record high. Holders sold 22.6 million ETH at losses of 5% to 25%.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/7SKw-EUPGoDfhKsPQlNwgo9dqUPTARKoEhwOoINcNNNt52G9MCNG4wO-ViBYeCL0dWLVYUmI5_e3as1iS8EFKz4WgbVYcTmCdh3AwKKOjbyOxz2QB6nQeAT_g1SzTKJ6GMoziIUf\" alt=\"Chainalysis: Bitcoin whales used the market drop to build positions\"\/><figcaption>Source: Chainalysis.<\/figcaption><\/figure>\n<p>In dollar terms, investors lost at least $3.2 billion on Bitcoin. Gradwell noted that for Ethereum the figure is smaller, but the overall picture is similar.<\/p>\n<p>Analysts found that the average cost basis for bitcoin for investors who entered the market in the last year was $37,800. During the week, Bitcoin\u2019s price hovered around this level, finally moving above it toward the end of the week.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/jmBxIFzAP8mWtUxv8UX4zn81m7RS_0I9_PRA-Qi4XniOz5rI0NLf35SIbZT49DCDOfCSUeuqBPB9ThfyiIj9z4927bgWAQYilGkiOPpYiLNfNiYYb8qHBoMqb_fEqtDdoDS_v-Z5\" alt=\"Chainalysis: Bitcoin whales used the market drop to build positions\"\/><figcaption>Source: Chainalysis.<\/figcaption><\/figure>\n<p>According to Gradwell, if the price had settled below the average cost basis, one could conclude that Bitcoin holders doubted the asset\u2019s fair value.<\/p>\n<p>For Ethereum, the average purchase cost was $1,700.<\/p>\n<p>Earlier, Morgan Creek Digital co-founder Anthony Pompliano concluded that during the market slump Bitcoin addresses with balances between 10,000 and 100,000 BTC <a href=\"https:\/\/u1f987.com\/en\/news\/opinion-whales-bought-nearly-122600-btc-amid-market-downturn\">increased their positions by 122,588 BTC<\/a>.<\/p>\n<p>MicroStrategy CFO Fung Le described the investment in digital gold as <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-cfo-says-bitcoin-investments-are-a-duty-for-tech-firms\">&#8216;the obligation of technology companies&#8217;<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Large investors used last week&#8217;s plunge in bitcoin prices to increase their positions. The whales bought 77,000 BTC, according to analytics firm Chainalysis.<\/p>\n","protected":false},"author":1,"featured_media":43324,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,274,46,1156],"class_list":["post-43323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-chainalysis","tag-ethereum","tag-institutional-investors-and-whales"],"aioseo_notices":[],"amp_enabled":true,"views":"28","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/43323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=43323"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/43323\/revisions"}],"predecessor-version":[{"id":43325,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/43323\/revisions\/43325"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/43324"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=43323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=43323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=43323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}