Bitcoin whales didn’t take much time off during the holiday period and were quite active on crypto exchange Coinbase, according to Kaiko – a cryptocurrency data trading firm. Even though the overall crypto trading volume on Coinbase dipped due to the holidays, the whales executed large trades, which spiked Coinbase’s Bitcoin trading activity.
Bitcoin’s prices were temporarily bullish on December 30, as the concentration of buy orders on Coinbase was abnormally large, according to Kaiko’s research and strategic initiatives director Clara Medalie. Under normal market circumstances, the day-to-day market share is kept relatively steady by exchanges. Via an email, Medalie told CoinDesk that, in all likelihood, the traders bought big on December 30 after deciding not to wait for Bitcoin prices to dip further. Bitcoin prices had been on the decline through the entirety of December.
The BTC/USD trading pair experienced a 1.4% rise on December 30, according to Coinbase and TradingView data. This was preceded by a significant dip in Bitcoin’s value over a three-day period, during which the crypto dipped from $52,100 to $46,094.
Most traders who buy big typically tend to split their orders to prevent any potential impact on the spot price or price slippage. For instance, MicroStrategy, a software company, purchased over 1,900 Bitcoins during the December 9 – 29 period for a total cash amount of $94.2 million.
According to Medalie, it’s likely that the big purchases on December 30 came as a result of Coinbase’s high liquidity. During the same period, similar trading activities were seen across several other crypto exchanges as well