According to IntoTheBlock data, wallets holding between 1,000 and 10,000 BTC of Bitcoin have increased their holdings as prices have fallen over the past few days, while those holding less than 1 BTC have become sellers.
Bitcoin ETFs saw net outflows of $168 million on Monday, led by Grayscale’s GBTC, Fidelity’s FBTC and 21Shares/Ark Invest’s ARKB.
One analyst argued that ETF investors were holding on “much stronger” than expected, with just 0.3% of assets outflowing from the funds.
Bitcoin {{BTC}} investors experienced a roller coaster (mostly down) over the weekend, with prices falling to as low as $49,000 on Monday morning before recovering slightly to $56,000 in the morning, sparking a variety of reactions from investors.
According to data from blockchain analytics firm IntoTheBlock, Bitcoin whales, also known as large asset owners, took advantage of low prices to make purchases, while small investors sold in panic.
Crypto wallets holding between 1,000 and 10,000 BTC, worth around $56 million to $560 million at current prices, have “shown confidence during the recent downturn and have been steadily increasing their holdings as prices have fallen,” IntoTheBlock analysts said.
On the other hand, it was stated that wallets with a balance of less than 1 BTC showed “weak hands” and experienced the biggest decrease in their assets during the market decline yesterday.
Wallets holding between 1,000 and 10,000 BTC have shown confidence during the recent decline, steadily increasing their holdings as prices have fallen.
On the other hand, wallets with a balance of less than 1 BTC showed weak hands, last night… pic.twitter.com/ib2bNv1YQJ
— IntoTheBlock (@intotheblock) August 6, 2024
U.S.-listed spot bitcoin exchange-traded funds saw net outflows of $168 million on Monday, according to data collected by Farside Investors. Outflows were limited to Grayscale’s GBTC, Fidelity’s FBTC and 21Shares/Ark Invest’s ARKB, while rivals saw very modest inflows or flat performance.
Read more: Ethereum ETFs Gain $49 Million Inflows as ETH Falls
Focusing on the positive, Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, noted that outflows represented just 0.3% of total assets under management in ETFs. He also said that BlackRock’s $18 billion IBIT, the largest of the spot funds, had no net outflows.
“This is very little,” Balchunas said yesterday, referring to the overall level of flows. “However, I think one day, this week, I could see more outflows. I was thinking a few billion would leave. But so far, it looks much stronger than that.”