Opportunity to Buy Low

Whales consider market drawdowns as a strategic opportunity to buy Bitcoin at a more reasonable price via a strategy termed "buying the dip." The strategy is aimed at reaping more BTC in situations where its price falls, mostly under pressure from wider market volatility or panic selling by smaller investors. During recent local corrections, Bitcoin's price even briefly fell below $60,000, and many short-term holders were selling at a loss. Whales took advantage of these sell-offs, therefore buying large amounts of BTC at discounted prices, to amass upwards of 1.5 million BTC in six months.​

This makes sense because whales are long-term investors who believe that Bitcoin would appreciate over time. When the price dips, they can buy more cost-efficiently and position themselves for future gains once the price bounces back. Furthermore, such accumulation further reduces the supply of Bitcoin on exchanges, adding to scarcity that could drive prices higher when demand picks up again.

But this also makes perfect sense in terms of a very basic investment principle: "buy low, sell high." Coming into the market during downturns, the whales not only get into advantageous positions to buy BTC but also stabilize the market, as buying may be strong enough to absorb selling pressure and help sustain price support during bearish phases.

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~ Nesaty