Nansen’s research analyst points out that exchange outflows likely mean investors are buying the dip.
Israel’s war with Iran has triggered a significant dip in the price of Bitcoin (BTC). However, Nicolai Søndergaard, Research Analyst at Nansen, explains that many investors appear to be buying the dip. In a statement shared with crypto.news on Monday, June 23, Søndergaard also revealed what the whales are accumulating.
“We are seeing exchange outflows so it is likely that people, regardless of being retail or institutions are buying the dip,” Nansen’s Søndergaard said in a note. Generally when it comes to war and other external factors that disrupt things globally, there tends to be heavy short-term dips which later rebound,” he added.
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The situation appears to be unfolding similarly this time, following the conflict between Israel and Iran, which the U.S. recently joined. Søndergaard noted that the rebound will likely depend on the severity of what comes next. Still, he emphasized that smart money seems to be betting on a better outcome than most expect.
“Regardless of this, smart money still seems to be going a bit more risk off,” Søndergaard revealed, citing analytics from Nansen’s platform.
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Whales are buying memecoins, despite the Bitcoin dip
Nansen’s analytics reveal significant interest in memecoins among whales. Specifically, all of the top earners in the past seven days who had at least a 50% win rate had some level of exposure to memecoins.
The biggest winner made all of their profits on memecoins, achieving an ROI of 2,829% with a realized net profit of 196%. Most of these gains came from the USELESS memecoin token.
Top 10 memecoins by market cap, with daily and weekly price change | Source: Messari
Memecoins have seen a strong recovery on June 23, with many of the top tokens seeing double-digit gains. Among the top gainers, SPX6900 was up 20%, Fartcoin was up 17%, and Mog Coin was up 22%. Still, these gains were not enough to cover their weekly losses.
Read more: Three reasons why the soaring SPX crypto token could crash soon
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