Key Points
- Bitcoin and Ethereum whales are buying up assets amid a market downturn.
- Large Bitcoin and Ethereum holders registered a net inflow of 1,900 BTC and 61,000 ETH respectively.
Bitcoin (BTC) and Ethereum (ETH) whales are taking advantage of the current market downturn by purchasing more of these assets. Bitcoin experienced a 1.4% drop in the last 24 hours, currently trading at $97,300. Last week, Bitcoin reached an all-time high of $103,700.
Ethereum also witnessed a decline, dropping 3.3% and is currently trading at $3,750. Notably, Ethereum surpassed the $4,000 mark on Dec. 6, a first in nine months.
Whale Accumulation
As Bitcoin and Ethereum prices fell, large holders began to accumulate. Market analytics platform IntoTheBlock reports that Bitcoin whales registered a net inflow of 1,900 BTC on Monday, following consistent declines since Dec. 5.
Bitcoin whale transactions, each worth at least $100,000, surged by 116% to $93 billion. Ethereum whales mirrored this trend, registering a net inflow of 61,000 ETH on Dec. 9. The spikes in BTC and ETH large holder net flows coincided with the dip in prices.
Market Trends
The number of large Ethereum transactions also increased, rising 127% to $10.9 billion on Monday. These sudden shifts in whale activity could potentially spark FOMO (fear of missing out) among retail investors, possibly driving prices up again.
According to IntoTheBlock, over $200 million in USDT entered centralized exchanges on Dec. 9. Typically, the crypto market experiences bullish momentum as investors buy Bitcoin and altcoins using the largest stablecoin.
At present, the global crypto market cap has dropped 6% in the last 24 hours, standing at $3.65 trillion, as per data from CoinGecko. However, the daily trading volume has surged from $247 billion to $475 billion over the past day.
The market cooldown might be due to the anticipation of the U.S. Consumer Price Index, scheduled for release tomorrow, and the upcoming FOMC meeting on Dec. 17 and 18. If these events show bullish signs, the crypto market could see another upward momentum phase.
Note: This article is for educational purposes and does not constitute investment advice.
