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The BTC/USDT pair on Binance recently tapped its single largest volume on Binance, showing that an anonymous whale or large holder was willing to get as much BTC as possible below $19K.The massive Bitcoin buying volume was also spotted on two other exchanges.
While the reason for the massive buying remains unknown, whales are typically known to make use of periods of dip or consolidation to accumulate at a discount.
According to a recent report by on-chain analytics firm Glassnode, there is a historically significant scale of HODLing taking place currently on the market. The 90-day Coin Days Destroyed (CDD-90) metric, which assesses the total sum of coin day destruction over 90 days, helps to visualize periods of higher and lower coin age expenditure, which has reset to what is effectively an all-time low.
This implies that older coins are essentially the most dormant they have ever been, and this adds weight to the case of extreme HODLing being the dominant investor behavior. Glassnode states, "It appears increasingly likely that the Bitcoin HODLers who remain are strapped in and willing to go wherever the Bitcoin ship takes them."
Bitcoin jumps 6%
Even as equities touched 2022 lows, Bitcoin increased by as much as 6% to surpass $20,000, its highest level in more than a week. The fact that the S&P 500 closed on Monday at its lowest level since 2022, with a decline in U.S. stocks, suggests that the link between Bitcoin and equities may be waning.
At the time of publication, Bitcoin was nearly 5% higher at $20,160 but is still having trouble escaping its narrow trading range. In the meantime, traders are constantly monitoring the U.S. dollar. Since Bitcoin moves inversely to the dollar, a strong dollar is negative for the lead cryptocurrency and vice versa.
According to market observers, the dollar index may be about to peak, which would indicate a potential bottom for Bitcoin. This might also partly be a reason for Bitcoin's recent price rebound.
Dan Burgin
Vladislav Sopov