Leading crypto Bitcoin is trading around 75% off its all-time high. However, the on-chain activity of whales reveals interesting facts about altcoin trading.
Whale activity in altcoin projects draws attention
Bitcoin (BTC) has made a notable attack in the last few days. However, it has been trading almost sideways at $21,623 in the last 24 hours. Altcoins, including Ethereum, also accompanied Bitcoin in its latest release. However, important actions are observed around altcoins in the market. This is perceived as an encouraging sign in the crypto ecosystem.
According to crypto trading data provider CryptoQuant, several exchanges have significant action in altcoins. The Bitcoin environment, on the other hand, has a relatively calm atmosphere. Despite this, in the on-chain movements in question, it is clearly seen that whales are accumulating altcoins on exchanges.
cryptocoin.com As you follow, there has been a slight bounce on the Bitcoin front in the last few days. However, this does not seem to be the reason behind altcoin accumulation by whales. Experts say one of the most likely reasons for this is over-the-counter trading with other whales using custodial services. Moreover, according to CryptoQuant analysts, it is possible for whales to open a long or short position using altcoins as collateral.
Another reason could be an upcoming altcoin project on crypto exchanges. Experts see it as likely that the liquidation of crypto hedge funds has also boosted altcoin activity. They also note that whales rarely deposit assets on exchanges at these prices. Therefore, they note that these examples are less likely to encourage altcoin buying.
Do whales feel the bottom approaching?
By the way, the debate on whether these levels are the bottom in the crypto market has been going on in recent days. Therefore, this altcoin accumulation also raises doubts about the bottom prediction. On the other hand, the crypto winter mood in the industry still persists.
Also, there are widespread expectations of further declines in Bitcoin price. Some popular analysts are pronouncing the figures of 10 thousand dollars. However, the recovery in BTC price over the past few days has given altcoin investors morale.
The leading crypto is up 11.82% on a weekly basis, according to data from ComiMarketCap at press time. The price of the leading altcoin Ethereum (ETH) increased by 14.60% in the same period. Although BTC and ETH have shown a remarkable performance in the last week, the risk factors on the market remain.
Investors and traders, in particular, are closely following the steps to be taken by the Fed. Strong US NFP data today seem to allow the Fed to increase by 75 basis points in July. The continuation of the Fed’s personal stance naturally negatively affects cryptocurrencies in the risk asset category.
