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Bitcoin and Ethereum whales buy massively: trend reversal?

 


While the stock and crypto markets are in the red, the Bitcoin and Ethereum whales continue to accumulate BTC and ETH. What does this mean for the courses? Will the Whales keep investing?


Bitcoin and Ethereum whales are buying large amounts of BTC and ETH during the current downtrend, according to data from crypto analytics firm Santiment. You don't seem to be deterred by current market movements. One can use different methods to make an informed forecast for the development of crypto courses. These include, for example, technical analysis or on-chain analyses. Ultimately, however, it is the big players in the market who cause large price movements and take most of the profits. Let's take a look at the big fish's current strategy.


Whales' Ethereum holdings hit new ATH

On the chart below you can see the Ethereum price along with some on-chain data. The blue chart shows the number of transactions made by the Whales. The yellow curve is the Whales stablecoin share (at least 30 million USD), while the red and purple curves represent the top Ethereum addresses (1000-100.00 ETH). The purple curve shows the holdings of the non-exchange addresses, while the red curve also includes the holdings on the crypto exchanges. Interestingly, the ETH holdings of the whales and exchange wallets and the stablecoin percentage have increased significantly over the past year. From this one can conclude that the whales in particular made large profits in the last year or managed to accumulate coins and stablecoins.


In addition, the whales sold their Ethereum shortly after or during the ETH price reached the all-time highs at the time. Conversely, the whales bought Ethereum after ETH price hit the bottoms at the time. So the whales appear to be timing the macro highs and lows well.


Notably, during the current price decline, the big ETH whales used large amounts of their stablecoins to buy Ethereum (the yellow curve). At the same time, top whales' ETH holdings recently hit a new all-time high. As it stands, the smaller and larger Ethereum whales are currently not selling, while the “bigger whales” have continued to buy. So these long-term investors still appear to be (long-term) bullish. Now let's look at the behavior of the bitcoin whales.


Similar behavior can also be observed with Bitcoin . The BTC whales also used some of their stablecoins to buy bitcoin .


As it stands, crypto whales appear to be viewing the current market action as a buying opportunity, ignoring some experts' bearish forecasts .


Institutional investors are holding onto bitcoin positions

The CME exchange is the exchange with one of the largest volume of futures in the world. Institutional investors trade leveraged Bitcoin and Ethereum products there.


Interestingly, institutional investors are still mostly long bitcoin positions (betting on the price going up), even though they reduced them in March, probably because of the turmoil in the markets. At the same time, they opened some bitcoin shorts (betting on a falling price) in the last few weeks. So in the short-term, they appear to be expecting further price declines, while remaining bullish in the long-term, keeping the majority of their positions open.

What does this mean for the Bitcoin and Ethereum course?

The Whales recently used some of their stablecoins to invest in Ethereum and Bitcoin . This means that they assume that the BTC or ETH price will probably be above the current rate in the future.


Historically, the Whales accumulated cryptocurrencies as prices fell, then sold them to other market participants as prices rose. Therefore, we could well be on our way to the next macro bottom or bottom. Because they are now accumulating.


However, with the Whales using large amounts of their stablecoins, we may actually be relatively close to the bottom and see a trend reversal soon. In theory, however, while the Bitcoin and Ethereum price continues to fall, the whales could buy more BTC and ETH and the current bear trend could continue for longer.


Nobody knows whether the long-term strategies of the Whales will work out in the future. In the past, however, they were worth it.


Disclaimer

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action that the reader takes based on the information found on our website is entirely at their own risk.

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