BTC and ETH pump: On-chain data shows that whales are stepping up their accumulations of Bitcoin (BTC) and Ethereum (ETH).
BTC being held by large investors has reached its lowest percentage in the last three years. Yet there has been an intensification in demand for the asset in recent months. This is despite (or because of) its price experiencing a 60% drop in 2022.
According to CryptoQuant CEO Ki Young Ju, BTC trading volume on exchanges has increased 20 times in the last six months. Because the price has not followed this jump, it is possible to conclude that the asset is in a strong phase of accumulation.
“Volume renewed a year high last month, but there hasn’t been much change in the daily closing price, indicating someone is buying all the liquidity on the sell side.”
BTC: Binance leads buys
Ju’s analysis also shows how Binance has been expanding its dominance during the crypto winter. “Since Bitcoin price hit the $20K level, Binance’s spot trading volume dominance has skyrocketed and is now at 84%,” he noted.
The largest exchange in the United States, Coinbase managed to grab just 9% of the total volume. The company recently saw a big drop in its revenues, which resulted in the sharp devaluation of its shares and cuts in its staff.
Despite the increase in volume, there are fewer and fewer coins on exchange trading platforms. Glassnode pointed out that the number of addresses sending BTC to exchanges reached its lowest value in two years last Thursday (20), which reaffirms that the asset is going through a strong phase of accumulation.
Whales invest millions in ETH
Crypto whales are also interested in Ethereum. Data from analytics firm Santiment shows that addresses holding at least 1 million ETH have purchased more than 3.5 million units of the asset in recent months. The total amount invested by these investors was $4.55 billion.
Like BTC, ETH has been increasingly scarce on exchanges. The outflow of the token on these platforms has surpassed the inflow in the last two weeks, indicating an intensification in its accumulation.
It remains to be seen how long the whales will continue to accumulate both assets and whether a new bull cycle can start after this phase. At the close of the story, Bitcoin was trading at $19,175, while Ethereum was priced at $1,290. The assets have had their prices experience drops of 0.2% and 0.8% respectively in the last 24 hours.
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