Large investors who have a lot of Bitcoin are referred to as Bitcoin whales. However, they are now making big moves in the crypto market. Bitcoin’s price has become quite volatile. There are many people asking why these whales are purchasing crypto that is undervalued. Do they believe in deep long term growth? Or is this a market reset or correction?
What’s Happening with Bitcoin?
The world’s largest and most well known cryptocurrency, Bitcoin, recently dropped off in price. It went from a high of $106,400 to merely around $91,530 in just a few days losing over 14%. Sudden such decrease made small investors nervous and some of them started to sell their Bitcoin. It is also interesting to note, though, that Bitcoin whales are buying more BTC during this dip.
The question at large is: Why are whales buying when so many other investors are selling? Well, there are crypto analysts who say that whales take these price drops as buying opportunities for cheaper bitcoin with the resolve that price will go up later. During past market corrections, large investors have bought more BTC as the price comes down due to the hope of getting even more space on higher swings.
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Bitcoin Whales and Undervalued Altcoins
Nevertheless, whales aren’t just looking towards Bitcoin. And they’re also focusing their efforts on undervalued altcoins, smaller cryptocurrencies that seem to be in for some huge gains. Among the altcoins that are currently getting attention is $FXG, the native token of FXGuys. Since this coin is still quite early in its lifespan, it has just a $0.04 valuation, and this makes it a very attractive investment proposition to those who see it going places.
Therefore, why do whales care about $FXG? Some of its features are quite appealing, such as staking rewards (when token holders can profit simply by holding their tokens), no taxes on buys/sells, and a Trader Funding Program that allows traders to access capital. Due to these features, whales may consider this as a great opportunity to help the token grow.
Market Reset or Correction?
You might be wondering now whether the current market situation is a ‘reset’ or a ‘correction’. A market reset happens upon a sharp drop in prices and market rebuilding. While a market correction is a period during which prices decline following a quick overpraised rise, things return to usual at the end of it.
However, according to many analysts, this is a market correction in the case of Bitcoin and $FXG. Although Bitcoin has had a fall in price, big players on the Bitcoin market are not giving up. In this, they are buying at low prices with the hope that the market will bounce back. History suggests that there is no reason we cannot see the price of Bitcoin go up again as long as it can keep on holding bullish above key support levels.
What Does This Mean for Investors?
This scenario can be scary for smaller investors. They might be thinking that seeing prices drop so quickly they will get out of fear. They’re but for whales, an opportunity to purchase cheap and make large profits later on. Therefore, if you are one of the investors, it is important to decide which strategy suits you best.
Therefore, Bitcoin whales purchasing undervalued crypto could be an indicator of market long term success. Most definitely, it’s either a market correction or a reset but quite obviously, whales are always quick to see price drops as an opportunity to make moves. Whether their strategy will pay off is still to be determined, but as things stand, it appears that they are hoping for a recovery.
Also read: Bitcoin Eyes $110000 Milestone as Market Signals Point to Potential Growth
