On August 15, the price of Bitcoin fell below the psychological mark of $10000. And the fear index reached the level of December 2018, when a protracted collapse in the cryptocurrency market began. But this did not stop the whales, who bought the asset for cheap.
Whales go hunting for BTC
On August 15, for the first time this month, the BTC price fell below $ 10,000. The bears ran out of steam at $ 9,646, after which the rate recovered again.
Along with the price, the fear and greed index created by Alternative.me service to determine the mood of traders also collapsed. So, he reached 11 points, which shows "extreme fear". And this is the lowest level since December 13, 2018, when BTC reached $20,000, and then collapsed to $3,000.
According to Alternative.me, "extreme fear" shows that investors are too worried, which means that the market has an excellent opportunity to buy an asset at low prices.
And at least the whales – the largest BTC holders – did not miss the last opportunity. The Block company claims that during the last fall, 67% of Coinbase customers actively bought Bitcoin. And this is the top 10% of the "richest" cryptocurrency exchange customers.
On August 16th, the cost of BTC collapsed again, reaching $9881, according to Coinmarketcap. The index of fear and greed, on the contrary, grew up and stopped at around 31 points. This means that moderate fear reigns in the market. The index last time was at this level on July 31, 2019, after which the bullish race began on the market.
Whales buy BTC at low prices. The exact cause of the sharp drop in BTC is unknown. Experts believe that there are several factors for this: traders exit the market, global uncertainty, as well as the transfer of the decision of the US Securities and Exchange Commission on the Bitcoin ETF.
Editor: Godfrid Brower
See also: "Why Bitcoin has fallen below $10000"