Despite the bearish sentiment in the market, Bitcoin and Ethereum whales continue to accumulate quietly
As AZCoin News reported, BTC started the week with a 7% drop, which could come from BTC Bitfinex Shorts or regulations surrounding the market and rising inflation. Despite the bearish sentiment in the market, Bitcoin and Ethereum whales continue to accumulate quietly.
Ethereum’s top 10 whale addresses are continually accumulating ETH
According to Santiment, after dropping almost 19% from their holdings after ETH reached its $4,360 all-time high, the Ethereum whale addresses have accumulated 2.12% of ETH’s circulating supply in the last 41 days.
Furthermore, Santiment also reported that the ten largest Ethereum wallet holders currently hold 20.58% of the total ETH supply they have accumulated since May 2017.
“Ethereum‘s top 10 largest addresses now own the highest percentage of ETH‘s overall supply (20.58%) since May 2017. After dropping as low as 18.46% after the All-Time High, they’ve now accumulated 2.12% more of ETH‘s total supply in the last 41 days”, Santiment stated.
Earlier this month, Santiment reported that investors were withdrawing their ETH holdings from crypto exchanges in bulk. ETH balances on centralized exchanges have fallen to their lowest level since 2018 as of July 2. According to Santiment, this could reduce the risk of any major sell-off in the near future.
In the last 48 hours, Ethereum’sprice has been dragged down by Bitcoin’s most recent dip to today’s local low of $31,550. At the time of writing, ETH’s price is trading below $2,000 – at $1,945, according to CoinMarketCap.
The third-largest Bitcoin whales add to BTC holdings during the dip
However, the good news for the bulls is that there are signs of large investors stepping in and buying BTC as Net Exchange flows registered notable outflows of thousands of BTC by the hour.
Netflow of BTC via hourly chart | CryptoQuant
Analysts believe that a supply shock will come to BTC as soon as the remaining sellers invest, leading to a significant rally as new Bitcoin whales enter the market. Just overnight, a whale with the third-largest wallet added 122 BTC ($3.9 million), increasing total holdings of BTC to 116,122 BTC worth $3.7 billion.
This is the same group of whales that have been consistently buying more BTC over the past two months, around the $30,000 – $31,000 support mark. This could be one of the reasons that the latter level has held without breaking since May 19.
Whether BTC can hold the support level and start breaking out of the trading range, remains to be seen. Bullish on-chain indicators suggest a breakout is imminent as soon as supply dries up completely. Furthermore, according to Yahoo Finance, the latest drop in the cryptocurrency market could stem from rising inflation in the US and UK. These sentiments have reinforced the idea that central banks are about to raise interest rates.
Not only has the inflation report contributed to this market decline, but announcements of crypto-related regulatory measures have also emerged from various parts of the globe. As a result, the market rushes, which has a major impact on cryptocurrency prices. All these factors show that cryptocurrencies in general are under great pressure from many countries and central banks. Therefore, when things get better, perhaps the market situation will be better.
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