Binance and Whales Buy the Dip: Bitcoin Price Recovery and Bullish Sentiment

by muhammed July 17, 2024

written by muhammed July 17, 2024 4 minutes read

Crypto Markets See Bitcoin Price Dip

Recently, the crypto markets have gone through a tough time. Bitcoin and other cryptocurrencies saw their prices fall sharply. This drop, known as a dip, was partly because the German authorities sold a lot of seized Bitcoin. This caused a lot of liquidations, which means many people sold their Bitcoin quickly. But not everyone panicked during this dip.

Big Players Buy Bitcoin During Dip

While many were selling, some big players in the market took advantage of the lower prices. An on-chain researcher noticed that Binance, one of the largest cryptocurrency exchanges, increased its Bitcoin reserves. Binance added 41,000 Bitcoins to its existing 580,000 BTC reserves. This move happened during the dip when many were panic-selling. Interestingly, Binance had made a similar move earlier in the year.

During the same time, other exchanges like Bitfinex and Upbit also bought more Bitcoin. Bitfinex added around 13,000 BTC, and Upbit added 5,000 BTC to their reserves. This data shows that the Bitcoin balance across centralized exchanges (CEXs) is growing. Usually, this means there is a higher selling pressure in the market.

Whales Are Bullish on Bitcoin

It is not just exchanges that are buying Bitcoin. Large individual investors, known as whales, were also accumulating Bitcoin. Whales were buying Bitcoin at their fastest rate since April 2023. Ki Young Ju, the founder of CryptoQuant, a major provider of on-chain and market data analytics, noted this trend. According to him, whales accumulated 85,000 BTC over the last 30 days. Some estimates say whales bought 71,000 BTC within the last week. These purchases were partly at the expense of ETF holdings.

On July 5, the whales bought over 47,000 BTC at an average price of $57,000. Meanwhile, smaller traders were selling during the dip. Ki Young further suggested that most of the current selling volume in the market can be absorbed by the over-the-counter (OTC) market.

German Bitcoin Sales and Market Impact

The way the German authorities sold their Bitcoin is also interesting. Instead of using a specialist broker, they sold the funds directly on the retail market. After weeks of small transfers, the government quickly accelerated the sales. By July 12, the German government had completely emptied its Bitcoin wallets.

The timing of these sales was also questioned. Around the same time Germany started selling, the Mt.Gox exchange was preparing to repay its debtors. This added more selling pressure to the market, pushing prices down further.

Smart Moves by Binance and Other Buyers

Some people believe that Binance and other buyers made a smart move by purchasing Bitcoin during the dip. They bought Bitcoin at a lower price, which might not be seen again. Others say that these big buyers helped stabilize the market and support Bitcoin prices. Despite this support from institutional investors, it is clear that retail traders still play a big role in shaping the market with their trading patterns.

Bitcoin Price Recovery and Future Predictions

Since the dip, Bitcoin has significantly recovered. At the time of writing, Bitcoin has reached $63,000. Some experts even predict that Bitcoin could reach a new all-time high (ATH) by the end of this month. “We are about to experience the longest bull run ever,” said another expert from CryptoQuant.

The number of wallets holding at least 10 BTC has been increasing this month. This also shows a generally bullish sentiment in the market. More and more investors are holding onto their Bitcoin, expecting prices to go higher.

Summary

In summary, the recent dip in Bitcoin prices saw different reactions from various market players. While many smaller traders sold their Bitcoin, big players like Binance, Bitfinex, and whales took the opportunity to buy more. The actions of these institutional investors and whales indicate a bullish sentiment in the market. Despite the selling pressure from events like the German Bitcoin sales and Mt.Gox repayments, the market has shown signs of recovery. As Bitcoin prices rise again, there is optimism that we may see new all-time highs soon.

muhammed

Muhammed is a passionate crypto blogger, tech enthusiast, and skilled software engineer who has established himself as a significant voice in the cryptocurrency and blockchain community. Muhammed’s fascination with technology and coding began at an early age. His parents, both techies, encouraged his curiosity, providing him with the tools and resources to explore the digital world. Muhammed’s academic journey laid a strong foundation for his career. He pursued a Bachelor's degree in Computer Science. During his time there, Muhammed immersed himself in various aspects of software development, cybersecurity, and cryptographic algorithms. He developed a project with friends, a decentralized application (DApp) for secure data sharing, received widespread acclaim and sparked his deep interest in blockchain technology and preventing digital censorship. After graduating, Muhammed worked as a software engineer for several leading tech companies, where he gained hands-on experience in developing scalable software solutions and working with cutting-edge technologies. His professional journey took a pivotal turn when he discovered Bitcoin and blockchain technology. Fascinated by the potential of decentralized systems to revolutionize finance and various other industries, Muhammed began to delve deeper into the world of cryptocurrencies. Combining his technical expertise with his growing passion for blockchain, Muhammed launched his blog and telegram channel where he shared his knowledge and insights on the latest trends, technologies, and market movements in the cryptocurrency space. His blog quickly gained traction, attracting a diverse audience ranging from tech-savvy developers to novice investors. Muhammed’s ability to break down complex technical concepts into easily understandable content has made his blog a go-to resource for many. In addition to blogging, Muhammed actively contributes to open-source projects, where he collaborates with other developers to improve the security and functionality of various platforms. His contributions have earned him recognition in the developer community, and he frequently participates in hackathons and tech meetups, sharing his expertise and learning from peers. Muhammed’s dedication to educating others about cryptocurrency extends beyond his blog. He has written articles for prominent tech and financial publications. His pieces often explore the practical applications of blockchain technology, the future of decentralized finance (DeFi), the evolving regulatory landscape and digital privacy and online censorship. What sets Muhammed apart is his relentless curiosity and his commitment to continuous learning. He believes that blockchain technology is still in its early stages and that its full potential is yet to be realized. This belief drives him to stay at the forefront of technological advancements and to share his knowledge with the broader community. Outside of his professional endeavors, Muhammed is an avid gamer and enjoys exploring the latest in gaming technology and virtual reality. He is fluent in Turkish, Arabic and English. His blend of technical expertise, passion for blockchain, and dedication to education make him a unique and influential figure in the crypto community, inspiring many to explore the transformative potential of decentralized technologies.