After the latest U.S. Consumer Price Index (CPI) report was released, Bitcoin (BTC) has been on an upward trend, currently trading over $103,000.
Over the last seven days, we’ve experienced an 8% increase, primarily due to increased investment from major players and a change in market conditions. As suggested by recent analysis from CryptoQuant experts, certain behaviors of ‘whales’ (large investors) may be shaping Bitcoin’s current path.
Bitcoin Price Rebounds Amid Growing Whale Activity
More simply, João Wedson, a contributor to the CryptoQuant QuickTake Platform, has recently pointed out an interesting pattern in the trading activities of ‘whales’ (large investors) on Binance, the leading global cryptocurrency exchange.
In my latest study, I delved into the Exchange Whale Ratio – a metric that quantifies the proportion of significant Bitcoin inflows compared to the overall exchange transaction volume.
The analyst indicates that this specific measure has surpassed previous records, suggesting a trend where substantial Bitcoin holders (commonly known as “whales”) are moving large quantities of Bitcoin onto exchanges.
The larger-than-usual transactions of Bitcoin by “whales” (large investors) might suggest they’re gearing up for significant buying or selling activities, which could intensify the market’s volatility, according to Wedson.
Keep a close eye out! Dramatic actions by significant market participants may increase volatility risks, yet they could also present exclusive chances for those who diligently follow the market trends.
Understanding New Whale Movements and Market Cycles
Beyond the whale transactions on Binance, another contributor from CryptoQuant, known as KriptoBaykusV2, shared valuable perspectives about the entry of fresh major investors within the market.
As per KriptoBaykusV2, the “New Whales” signal points out that big-time investors who were previously dormant are now purchasing Bitcoin. This trend over the last three years has gradually increased, implying a growing fascination towards the crypto market.
In other words, the arrival and departure of new whale investors tends to align with price fluctuations, which is crucial in deciphering market trends.
From historical records, it appears that spikes in whale activity tend to coincide with times of market turbulence. For instance, in 2021 and 2023, noticeable rises in the number of new big investors were typically preceded by substantial price drops. KriptoBaykusV2’s rephrased statement:
In the past, we have observed that increased whale activity frequently coincides with periods of market volatility. For example, during 2021 and 2023, significant increases in new large investors were often preceded by sizable price declines.
It’s essential for investors to know if the market is in a bull or bear cycle, as this information can greatly impact investment decisions. An increase in new large-scale investors (often referred to as ‘whales’) usually marks the beginning of a bull market, whereas severe drops that follow these trends could signal the emergence of a bear market. This pattern has been particularly noticeable since 2021, with these ups and downs becoming more apparent over time.
Right now, Bitcoin’s value stands at approximately $103,985. This represents a 4.9% rise within the last 24 hours and an almost 10% growth over the past fortnight.
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2025-01-18 03:41