Bitcoin Whales Accumulate as Fear Grips Retail Investors: Report
- Bitcoin whales continue to accumulate, showing confidence despite price dips and macro uncertainty.
- No whale exits are seen as in past crashes, signaling this pullback may be a mid-cycle correction.
- Analysts believe this signals a mid-cycle correction, not a reversal, as Bitcoins bull phase remains intact.
Bitcoin whales are not selling their assets despite price fluctuations and macroeconomic challenges that make the market unpredictable. The analytical platform, CryptoQuant, revealed that these whales are back to accumulating BTC. Excluding exchanges and mining pools, the measure represents true investors in Bitcoins. As such, analysts now argue that this price action supports the notion that BTC is still in an active bull phase.
CryptoQuant highlighted that these wallets are not distributing the assets. In the past, whale wallets pulled out before or during the apex in the market cycle. Even if they had left the market at the highs of last year, they should have been able to display some signs of profit selling. But instead of selling, these wallets have been gradually increasing their buying activities.
Mid-Cycle Correction Signals
This accumulation pattern looks a bit like a sideways market that was seen in August and September 2023. In the past, bitcoin prices stabilized as whales sneaked back into the market. Thats why many analysts anticipate the formation of a similar pattern. However, it indicates that the current pullback can only be a mid-cycle correction, not a mid-cycle reversal.
Some apprehension has been expressed over increasing tensions in global trade, as evident by the threats in the USChina trade war under the Trump administrations economy. This has elicited concern among investors of an all-new shock in the financial industry. Nonetheless, CryptoQuant differentiates between unforeseen crashes such as the COVID and planned ones. In the case of whales, they tend to leave before or just before the crash happens. Today, they are not.
Charts from that period indicate an obvious whale distribution before the drop. The lack of similar behaviour now indicates that investors are not preparing for a structural failure. However, recent trends indicate that there are expectations that the market will come to a standstill.
Bitcoin Benefits from Liquidity
Critics have posed some arguments that this is a manufactured crisis, and therefore, central banks may soon resort to easing measures. If there is, both the current Fed and China may employ liquidity operations. Past actions of this nature have led to increased interest in store-of-value assets such as gold and, in a more current context, Bitcoin.
It turns out that long-term holders are not only not leaving but also, in fact, continue to acquire more tokens. It goes against the proprietors actions that are characterized by anxious behavior, which is common among small shareholders. This divergence is one clear signal that the bullish trend is carried forward. Because the whales are holding onto their coins, Bitcoin may still be building up for its next grand run.
Read more: https://www.tronweekly.com/bitcoin-whales-accumulate-as-fear-grips-retail/
Text source: TronWeekly
