According to cryptocurrency experts at Chinalysis, large crypto investors reckon that a slump in bitcoin’s value to about $30,000 in mid-May was the perfect time to buy the digital asset. Crypto whales decided not to wait until the flagship cryptocurrency takes a deeper nosedive.
A number of think tanks keeping track of crypto exchanges reported that large market players purchased a record number of the most popular digital tokens last year. Crypto whales are betting on bitcoin strength in the medium and long term. Their strategy is to push bitcoin’s price down as low as possible and open a great deal of long positions. That is exactly what they did when bitcoin tumbled to $29,925 per token, thus causing a bearish wave in the whole crypto market. One of the services tracking crypto transactions estimates that traders bought in total 77,000 bitcoins worth almost $3 billion during the market crash in mid-May.
Experts point out that crypto whales rushed to buy bitcoin as soon as its price had plunged slightly below $35,000, though there were prospects for a further fall. Later, when the digital asset actually plummeted to the level of $30,000, the crypto market was hit by the most massive sell-off for the last 12 months. Small retail traders who had entered the market not long ago found it appropriate to sell their tokens. More than 175,000 bitcoins were sold in just 24 hours. Currently, the number one cryptocurrency is trading at nearly $36,000 per coin.