Asia-based financial services company HashKey Capital chose to collect altcoins instead of Bitcoin as prices fell.
HashKey Capital bought altcoins instead of Bitcoin at the bottom price
Bitcoin price spent less than $25,000 until 8:00 PM yesterday evening. The momentum gained in the following hours helped it climb to $25,695 today. HashKey Capital prepared with 7.47 million USDT sent to Binance before the market started to recover led by Bitcoin.
According to the report by on-chain analyst Ember Monitoring, he chose to buy Etheruem (ETH) with all of the USDT he sent to Binance today. The company’s average purchase price was $1,643. HashKey Capital previously preferred to buy ETH instead of Bitcoin.
昨天 @HashKey_Capital 转入 #Binance 的 747 万 $USDT 抄底了 $ETH ：
HashKey Capital 刚刚从 Binance 提出了 4547 $ETH ，本次他们买入 ETH 的价格为 $1643。4/19 $2090 卖出 ETH，6/16 $1643 买入。
他们下次会在啥价位卖出呢？😂https://t.co/AsEDjXwc1X推文由 @LionDEX_CN 赞助 https://t.co/kLYNQalnIF pic.twitter.com/SWgWClmq7j
— 余烬 (@EmberCN) June 16, 2023
ETH price is currently trading slightly above HashKey Capital’s average purchase price of 1,643. The leading altcoin is down around 5% after the FOMC meeting. HashKey Capital’s ETH investment comes at a time when the market is quite tense.
ETH price reacts to Fed rate decision
The Fed’s decision to keep the interest rate constant led to a sharp drop in the price of ETH. Individual investors remained hopeful, but whales and network growth posed challenges for recovery. The panic among investors was evident in the behavior of the whales. Data from Glassnode highlighted a significant decrease in the number of addresses holding more than 10,000 ETH in recent months.
However, individual investors continue to show interest, perceiving the price drop as an opportunity to buy at a discount. Interest from individual investors offers temporary support to the price of ETH. This leaves them vulnerable to whale behavior in the long run, given that the majority of ETH is still in the hands of ETH holders.
📈 #Ethereum $ETH Number of Addresses Holding 0.01+ Coins just reached an ATH of 24,343,133
Previous ATH of 24,343,031 was observed on 11 June 2023
View metric:https://t.co/XXb0u19ouH pic.twitter.com/u7rzmRqXcz
— glassnode alerts (@glassnodealerts) June 15, 2023
Network growth is declining
Also, recent data showed a decline in Ethereum’s network growth as well as its price. According to the data, interest from new addresses is decreasing. Also, Ethereum’s speed has dropped. This was indicative of the significant reduction in the number of ETH transactions taking place on the network.
Despite these factors, data from Coinglass revealed an increase in the number of longs taken against ETH over the past few days. As a result, investors remain optimistic over the long term.
cryptocoin.comAs we reported, analysts presented a negative outlook for ETH in the short term.
