With the end of the year approaching, many are still eyeing possible movements in the crypto market and especially a possible Bitcoin recovery.
In the midst of a lot of negative news, such as the collapse of the FTX, it may be interesting to look at some fundamental factors, such as whale hoarding, which is often a major determinant of market sentiment and trends.
Recently, Bitcoin struggled to break out of the $17,000 house and recovered relatively well this midweek. Analysts believe that the Bitcoin market managed to hold its price relatively strongly even with an extremely negative stance from the US central bank.
Bitcoin price reached and remained above $18k after the release of the Consumer Price Index (CPI). For these analysts, this could be the sign of a trend reversal consolidation and a possible sign that a bottom may have been reached.
As a result, analysts examined data from Santiment, an on-chain data provider, suggest Bitcoin fundamentals look extremely strong, mainly due to the movement of whales.
Bitcoin Whale activity indicates that the downtrend may be reversing
Data presented by Santiment suggests that investors believed that whales (with large amounts of bitcoin in their wallets) reduced their deposits compared to the past 14 months, when they sold more and consequently reduced the value of the asset.
“Maybe we’re seeing a turnaround now. Not necessarily with prices yet… but at least with whales finally hoarding instead of dumping their coins.”
The report also highlights that it is possible to see a sudden increase in the accumulation of various assets. The most curious thing is that this accumulation takes place right in the midst of the chaos caused by the collapse of the FTX, something that marked the market due to the negative news and the fear of an even bigger crisis.
The chart shared by the company also shows that hodler behavior is similar not only to BTC, but also to USDT, USDC, BUSD, and DAI, i.e. all Stablecoins.
The data shows that addresses have bought with large amounts $726 million worth of bitcoin in the past nine days🇧🇷 In addition, the network received 159 new addresses with between 100 and 10,000🇧🇷
That brings us to the current figure of 15,848 addresses currently holding between 100 and 10,000 bitcoins, and about 43.46 million smaller bitcoin addresses. Whale addresses represent 0.0364% of the total number of addresses.
If the Whales represent current crypto market sentiment, Bitcoin fundamentals could be pointing to the start of a recovery.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
