Over the last week, the cryptocurrency industry has been rocked by a massive sell-off from two groups of Bitcoin holders known as “whales” and “sharks.” Wallets holding 100 to 1,000 BTC have dumped more than 50,625 BTC, worth roughly $4.07 billion, according to Santiment. Wallets with 10 to 100 BTC have also not lagged behind, selling 7,062 BTC, valued around $567.1 million.
Source: Santiment
Big Players Selling Off—Cause for Concern or Opportunity?
Many individual investors wonder: is this a negative indication when big players like these start to cut their holdings? Though history demonstrates the market often responds to the moves of these two groups, there is no clear solution. While occasionally their large sell-offs indicate a correction, other times they present chances for investors to enter at lower prices before the next rally.
Conversely, there is also an accumulation among Bitcoin holders with more than 10 BTC. The group has accumulated around 5,000 BTC to their total ownership since March 3. This is fascinating since it reveals that another group sees an opportunity when one is deciding to leave.
Could Bitcoin Become a Global Financial Benchmark?
Although the huge selloff begs problems, the perspective of Bitcoin as a strategic asset has not changed. For instance, Deutsche Bank regards Bitcoin as “digital gold” and a strategic asset with benefits of scarcity, inflation resilience, and flawless worldwide transfers.
As previously mentioned in our report, the bank has stated that should the United States start storing Bitcoin as a strategic reserve, it may become the new benchmark for the world financial system. This is not a wild theory, the fact that big institutions are thinking about this indicates how Bitcoin is progressively being embraced as part of the financial ecosystem.
Traditional Banks Take Steps Toward Crypto Adoption
On the other hand, traditional banks are also becoming more near to the crypto space. The second-largest bank in Spain, BBVA, has received approval from the national financial regulator to offer trading services for Bitcoin and Ethereum. Using BBVA’s app, the service lets customers swap digital assets straightforwardly.
Though only a small set of users at present, all private banking clients in Spain will be able to join in not too distant future. Given that traditional banks have been dubious about digital assets, this is a significant turn for the crypto sector.
Digital Firms Like Rumble Bet on Bitcoin’s Future
Not only banks but even digital companies like Rumble are beginning to enhance their Bitcoin approach. The company lately bought 188 BTC for about $17.1 million. This step attests to Rumble’s dedication to digital resources as a component of their financial plan.
The market is progressively demonstrating that Bitcoin is no more only a speculative tool as more and more companies commit their funds to this digital asset.
Sell-Offs and Market Panic: A Buying Opportunity?
Though this is not always a negative thing, price swings and significant sell-offs in the crypto space can lead to panic. Like with other investments, some sell because they believe they have made enough profit, while others perceive an opportunity to buy at a lower price.
Meanwhile, at the time of writing, BTC is struggling. BTC is swapped hands at about $83,947.87, up 1.45% over the last 24 hours. But, it still corrected 12.79% over the last 30 days.
Recommended for you: