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The broader cryptocurrency market entered deep correction on Wednesday, January 27. Bitcoin (BTC) and Ethereum (ETH) entered sharp corrections turning the overall market sentiment negative with the overall market cap dropping below $900 billion.
On a 24-hour chart Bitcoin again tested levels below $30,000 although it recovered again and is currently trading at $31,653 levels. However, the continuous downward pressure on the BTC price over the last 15 days has left investors confused about whether if we are heading for another major correction in the coming days.
Similar has been the case for Ethereum (ETH). Despite hitting its all-time high above $1450, ETH has failed to keep the momentum going. In fact, any price correction in BTC has led to simultaneous profit-booking in ETH as well. Here’s what investors should be doing at the given time.
Bitcoin (BTC) On-Chain Fundamentals Improve, Whales Addresses Rise
Well, to be honest, big industry players and whales have continued to build their positions in Bitcoin over the last two weeks of price correction. Public listed companies like MicroStrategy and Marathon Patent Group has built up huge positions during the recent correction.
The two companies have accumulated a good quantity which is supposedly going to cold storage resulting in a BTC supply shortage. On Wednesday, Canadian investment giant Ninepoint Partners launched their Bitcoin Trust Fund despite past regulatory hurdles around Bitcoin ETF.
Data from Santimnet shows that since June 2020, we have another Bitcoin “mega-whale” with over 100K+ Bitcoins. On the other hand, Bitcoin (BTC) addresses with 1000+ BTC continues to grow in numbers.