Bitcoin has recently experienced a significant decline, with a sudden drop of over 15% within 4 days, reaching a low of nearly $60,000. However, some analysts believe that the market bottom may have arrived. Data from Bitfinex and Binance shows that whales have a stronger desire to borrow money and buy at the dip compared to retail investors.
Amid escalating geopolitical conflicts in the Middle East, a strong US economy, and the possibility of a delayed interest rate cut by the Fed, Bitcoin briefly dipped to $60,000, marking a maximum decline of nearly 15%. The topic being fervently discussed by market investors is whether the bottom has arrived.
BTC has hit rock bottom?
Today, Benson Sun, a KOL in the cryptocurrency industry, tweeted that he has a way to determine the market bottom. He looks at the trend of the Bitfinex USD lending rate (green line) and the Binance USDT lending rate (orange line). When the Bitfinex USD lending rate curve crosses above the Binance USDT lending rate curve, it often represents a market bottom. The reasons are as follows:
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Trend of Bitfinex USD lending rate (green line) and Binance USDT lending rate (orange line). Image source: Benson Sun
Benson mentioned that during the entire bear market period of Bitcoin’s oscillation between $16,000 and $30,000, the green line was consistently above the orange line. However, since entering a bull market in October last year, market sentiment has reversed. The orange line has become the norm above the green line. Interestingly, the periods when the green line briefly crossed above the orange line have all been in the relative bottom area of the bull market.
Whales did not sell during the market decline
It is also worth noting that data from blockchain analytics company Santiment indicates that despite the recent sharp decline in Bitcoin, whales have not sold their holdings. Since March 1st, major whale groups have continued to accumulate coins:
Wallets holding 100 to 1,000 BTC: Accumulated increase of 43,489 BTC
Wallets holding 1,000 to 10,000 BTC: Accumulated increase of 80,544 BTC
Wallets holding 10,000 to 100,000 BTC: Accumulated increase of 91,732 BTC
Note: Bitcoin whales typically hold at least 1,000 BTC or more.
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