Why Bitcoin’s Price Crash Could Be a Buying Opportunity for Big Players

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Bitcoin (BTC) fell sharply, falling to $91,000 in the early hours of Monday. The decline was due to adverse macroeconomic developments, including newly implemented tariffs in the United States.

This price action has investors and analysts closely watching the market for signs of a reversal or further decline. According to a recent analysis by CryptoQuant analyst TraderOasis, Bitcoin’s break below key support levels led to increased panic selling.

Nevertheless, the Coinbase Premium Index shows that institutional investors continue to accumulate BTC rather than sell their holdings. This contrast between retail selling and institutional accumulation suggests that large investors are taking advantage of the current decline to increase their holdings.

Bitcoin Market Dynamics and Institutional Activity

TraderOasis highlights several key market indicators that can shed light on the current dynamics. Open interest, a measure of active trading positions, has fallen sharply, suggesting a wave of forced liquidations as leveraged traders exit their positions. Oasis wrote:

The decline in funding rates suggests that market participants are taking short positions (betting on falling prices) and that bearish sentiment is increasing.

Notably, this ongoing pattern described by analysts hints at so-called “whales,” or large investors, entering a strategic accumulation phase.

Oasis mentioned that while retail investors face stop-loss liquidations, these larger entities appear to be absorbing Bitcoin at a discount. This accumulation during times of panic is not uncommon and often precedes a market recovery.

According to reports, current liquidations are the highest since September 2023, with many traders caught off guard by the sudden drop in prices. Mignolet compared the event to past market shocks, including the FTX crash and the COVID-induced crash.

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