Trusted

Crypto Whale Accumulations Drive Swift Market Recovery, Say Analysts

2 mins
Updated by Daria Krasnova
Join our Trading Community on Telegram

In Brief

  • Bitcoin and Ethereum saw significant rebounds post-market crash on Monday.
  • Market analysts highlight crypto whale activity as one of the key recovery drivers.
  • CoinGecko reports that the recent meltdown was much less than the COVID-19 crash.
  • promo

Bitcoin (BTC), Ethereum (ETH), and the broader crypto market have notably recovered following Monday’s market meltdown.

After dipping to the $49,000 level on August 5, Bitcoin is now trading at $57,375. Similarly, Ethereum has regained its footing at $2,519 after plummeting to as low as $2,100 on the same day.

Bullish Sentiments Persist Despite Macroeconomic Risks

Data from Santiment revealed that the crowd played a massive part in crypto rebounding over the past 30 hours. Analysts attribute this rapid rebound to large-scale investors, commonly called whales, who have been actively accumulating these crypto assets.

Read more: Who Owns the Most Bitcoin in 2024?

On-chain data from CryptoQuant shows that over 404,000 Bitcoins have moved to permanent holder addresses in the past 30 days. Ki Young Ju, CEO of CryptoQuant, stated that this is “clearly accumulation.” Ki also noted significant inflows of 40,000 Bitcoin to US spot exchange-traded funds (ETFs) over the last 30 days.

“New whales are accumulating,” he said.

Bitcoin Demand Change.
Bitcoin Demand Change. Source: CryptoQuant

Additionally, Ki pointed out the absence of major selling activity by “old whales,” referring specifically to the large investors who have held their positions for over three years. He noted that these whales sold their holdings to new whales between March and June.

Despite bullish sentiments, Ki acknowledges potential macroeconomic risks that could lead to forced sell-offs. He cited large deposits like those by Jump Trading as examples. Moreover, he noted that some on-chain indicators turned bearish but are borderline.

Amid rising worries about the crypto market’s future due to a recent crash, Ki remains optimistic. He believes that the bull market is still strong.

“If the market doesn’t recover in two weeks, I’ll reconsider. I follow smart money, so if I’m wrong, it means the new whales are either misguided or underestimated the macro environment,” he said.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

Juan Pellicer, Senior Researcher at IntoTheBlock, drew BeInCrypto’s attention to the net inflow of stablecoins to exchanges. Yesterday, it reached $0.99 billion, the highest since April 2023. This net inflow shows that investors are depositing stablecoins, typically intending to purchase assets.

Exchange Flows. Source: IntoTheBlock

A recent report by CoinGecko further strengthens these beliefs. It stated that the crypto market’s crash during COVID-19 was still five times worse than the recent sell-offs.

“In the last ten years, the worst global crypto market correction has been the -39.6% COVID-19 crash on March 13, 2020. […] In comparison, the largest crypto market sell off to date this year was significantly less severe at only -8.4%, which took place on March 20, 2024,” the report reads.

Top crypto projects in the US | October 2024
Exodus Exodus Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024
Exodus Exodus Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Lynn-Wang.png
Lynn Wang
Lynn Wang is a seasoned journalist at BeInCrypto, covering a wide range of topics, including tokenized real-world assets (RWA), tokenization, artificial intelligence (AI), regulatory enforcement, and investments in the crypto industry. Previously, she led a team of content creators and journalists for BeInCrypto Indonesia, focusing on the adoption of cryptocurrencies and blockchain technology in the region, as well as regulatory developments. Prior to that, at Value Magazine, she covered...
READ FULL BIO
Sponsored
Sponsored