Movement of Bitcoin Whales and Market Sentiment
Bitcoin’s drop below the $60,000 level has raised a red alarm in the cryptocurrency market. During these challenging times, Brian Q from Santiment shared significant insights regarding the activities of Bitcoin whales in the Thinking Crypto podcast. According to the data, whales holding large amounts of Bitcoin are accumulating more altcoins while the overall market sentiment declines.
Bitcoin Whales’ Accumulation of Altcoins
The cryptocurrency world is shaken by Bitcoin losing its critical $60,000 level. However, during this turbulent process, Brian Q from Santiment explained the strategies of Bitcoin whales during these volatile periods in the Thinking Crypto podcast. According to the data, large Bitcoin holders continue to increase their Bitcoin accumulation despite the overall negative market sentiment. This accumulation, while not overly aggressive, shows that wallets holding 10 or more Bitcoins have increased their assets over the past three months.
For instance, wallets holding 16.15 million BTC on June 3 added 34.2 thousand Bitcoins during this period when prices were quite volatile, reaching a total of 16.18 million BTC. While smaller addresses are selling, whales are making additional purchases to take advantage of lower prices. Historically, this has been a favorable strategy for whales. When Bitcoin corrects, altcoins often follow suit and can experience sharper declines. Last week, while Bitcoin dropped by about 1.5%, Ethereum lost 2%. However, altcoins like Solana and Toncoin faced much more severe declines of 7% and 15%, respectively. Experts suggest that whales prefer to target bleeding altcoins during these downturns.
Decline in Altcoin Performance
The decline in altcoin performance is a common scenario when Bitcoin’s price is volatile. However, this situation also presents potential buying opportunities. If Bitcoin can return to a level closer to $60,000, it could be a suitable time frame to enter the altcoin market. Another important metric to monitor is the Average Invested Dollar Age, which tracks the average coin age in wallets. When this number decreases, it indicates that old wallets are reintroducing their assets into circulation, which usually occurs during a bull run. This phenomenon has been prominently observed during the significant bull runs at the end of 2020 and the beginning of 2023.
If this metric starts to decline again, it indicates that new coins are entering the market healthily and potentially providing upward momentum for Bitcoin. Monitoring this decline could create a strong buying signal for investors seeking a long-term perspective.
