bitcoin and ethereum whales look to capitalize on the market slowdown as major assets trade at a discount.
bitcoin (btc) fell 1.4% in the last 24 hours and is trading at $97,300 at the time of writing. The flagship cryptocurrency hit an all-time high of $103,700 last week.
ethereum (eth) fell 3.3% and is currently changing hands at $3,750; The leading altcoin surpassed the $4,000 mark on December 6 for the first time in nine months.
When the prices of the two major assets experienced declines, the whales began to accumulate. According to data from market analysis platform IntoTheBlock, large bitcoin holders recorded a net inflow of 1,900 btc on Monday after seeing steady declines since December 5.
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bitcoin whale transactions, worth at least $100,000, rose 116% yesterday to $93 billion.
ethereum whales recorded a similar movement with a net inflow of 61,000 eth on December 9, according to ITB data. Spikes in net flows from large btc and eth holders occurred as soon as prices began to decline.
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The number of large ethereum transactions also increased by 127% to $10.9 billion on Monday.
Sudden positive changes in whale activity could trigger FOMO (fear of missing out) among retail investors and consequently drive prices up again.
ITB data shows that more than $200 million worth of USDT entered centralized exchanges on December 9. Typically, the cryptocurrency market records bullish momentum as investors buy bitcoin and altcoins using the largest stablecoin.
Currently, the global crypto market capitalization is down 6% in the last 24 hours and is around $3.65 trillion, according to data from CoinGecko. However, the daily trading volume increased from $247 billion to $475 billion over the past day.
One of the main reasons behind the market-wide cooling would be the expectations of the US Consumer Price Index, scheduled for tomorrow, and the next FOMC meeting, scheduled for December 17-18.
If these macro events show bullish signs, the cryptocurrency market will likely see another phase of bullish momentum.
Disclosure: This article does not represent investment advice. The content and materials appearing on this page are for educational purposes only.
