Cody McGrath 
Recent data have revealed that the Bitcoin’s (BTC) drop to 2022 lows has piqued the interest of major traders in the market.
BTC temporarily traded at $29,000, its lowest level since July 2021, after falling roughly 20% in the previous week. The token looks to have drawn a flood of whale purchases at this price level.
Traders also appear to be wary about allowing BTC to drop further and have been accumulating more. Several analysts believe the token has been heavily oversold and is due for a quick recovery.
Concerns about rising interest rates hit BTC and the larger crypto market. The latest fall began after the Federal Reserve raised interest rates in May.
Whales Accumulate BTC
According to data from blockchain research firm Santiment, BTC’s decline below $30,000 triggered whale accumulation. The token has had the most transactions over $100,000 since January.
There is clear evidence that Bitcoin
whale addresses are viewing yesterday’s drop below $30k as an event to accumulate.
-Santiment
Santiment also highlighted that whales’ overall BTC supply appeared to be increasing significantly.
Nonetheless, investors who tried to predict BTC’s bottom were largely burned last week. According to Coinglass data, a considerable number of long positions on the token have been consistently liquidated this year. BTC saw approximately $354 million in liquidations on Tuesday, with the majority of them being long positions.
Where is the recovery?
Though whales appear to be buying the token, BTC has yet to make a significant recovery. There are currently few positive factors in the market that could help the market bounce.
The United States stock markets, which BTC has largely followed this year, are similarly in a holding pattern, providing the token few clues to move. Concerns about inflation and the Federal Reserve’s rate hikes are also projected to exert downward pressure.
The focus now shifts to today’s U.S. inflation data, which may shed additional light on the Fed’s plans to raise rates this year.