It is known that whales move large amounts of cryptocurrencies across wallets. This happens in both times of bull and bear markets. Metrics have recently shown that whales are taking the current price drops as a buying opportunity. Movements of BTC wallets with around 100 to 10,000 Bitcoins, also known as whales, show that these investors are completely unaffected by the current market trends. Whales are preparing for the next bitcoin rally
Data shows that wallets with at least 100-10,000 BTC have increased their holdings in the past few days. These whales have amassed over $ 2.9 billion worth of bitcoin since the beginning of the week. After the price crash on September 7th, the market entered a period of low dynamism. The price stayed around $ 45,000 to $ 47,000, with not much movement either way. A perfect opportunity for large investors to fill their pockets.
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BTC price trading in the mid-range of $ 47,000 | Source: BTCUSD on TradingView.com
Another interesting metric is the issuing rate of the whale wallets. The on-chain analysis shows that these wallets don’t do much to spend their bitcoins. Rather, the assets held in the wallets have remained in their position. Usually only investors or companies move their coins to other personal wallets. In short, the whales are piling up and they don’t plan on selling anytime soon.
Market sentiment becomes neutral
Last week’s market crash brought market sentiment a full 180. The Fear & Greed Index had shown increasingly positive sentiment among investors the week before as the index shifted from greed to extreme greed. This put the market under immense buying pressure the week before some of the biggest news about the Bitcoin launch; the sovereign nation of El Salvador is making BTC legal tender.
However, on the day the law officially went into effect, the market did not react as it expected. Instead of triggering a continuation of the bull run the market was in, BTC had lost over 17% of its value in a flash crash. The Fear & Greed Index promptly moved into the fear range after the crash, where it stayed for the rest of the week.
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Fear & Greed Index becomes neutral | Source: Fear & Greed Index on Alternative.me
However, now the index has moved into neutral territory. Earn 7 points from last week’s Fear 46 to bring it to a neutral spot. Although the index shows a five point decline between yesterday and today. This shows that the index is slowing and moving back into neutral territory as market sentiment is still heavily skewed into negative.
Featured image from Pinterest, charts from TradingView.com and alternative.me
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