Bitcoin (BTC) underwent a significant shift in its price trajectory, closing below a crucial upward trendline on Wednesday. This marked the commencement of a new bearish phase that might extend over several months before a potential recovery. The downturn had far-reaching repercussions, particularly in the crypto derivatives market, where more than $1 billion in losses were incurred. Long traders, in particular, suffered heavy setbacks, accounting for over $835 million in losses.
The impact was most pronounced in the Bitcoin derivatives sector, witnessing liquidations worth approximately $493 million within the last 24 hours. Consequently, the collective market value of cryptocurrencies dipped by around 6.7 percent in the same period, reaching about $1.1 trillion as of the time of this report.
Despite the abrupt downturn in the cryptocurrency market and an increasing number of analysts predicting further downward pressure, the majority of investors remained hopeful, perceiving the situation as a favorable buying opportunity.
Insights derived from on-chain data analysis, courtesy of the market intelligence platform Santiment, revealed a notable uptick in the “buy-the-dip” sentiment, reaching its zenith since April. Notably, a remarkable 0.9 percent of all crypto-related discussions centered on the idea of capitalizing on price dips.
Read More: Why Did the Crypto Market Crash Today? Here Are the Top Reasons
In the aftermath of the decline observed in both Bitcoin and altcoins, the price of XRP witnessed a sharp decline, erasing gains achieved subsequent to the historic SEC vs. Ripple legal verdict issued last month. This dip was accompanied by a discernible surge in whale activity, a phenomenon evident from on-chain data analysis. According to an on-chain report from Santiment, transactions executed by Bitcoin whales spiked significantly following the recent market dip.
It’s intriguing to note that heightened whale activity was observable even before the substantial market dip. What’s even more noteworthy is that the number of Bitcoin addresses holding quantities exceeding 10 BTCs remained consistently elevated.
This pattern suggests that major holders, often referred to as “whales,” refrained from liquidating their holdings and instead continued to accumulate more Bitcoin.
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