- High-value stablecoin wallet holders, commonly known as “whales,” are strategically taking advantage of Bitcoin’s recent drop below $30,000.
- Another data from Santiment revealed a significant increase in addresses holding between $100,000 to $10 million worth of stablecoins like DAI and Paxos Standard (USDP) since June 27.
- At the time of writing, Bitcoin is trading around $29,390 and has risen by 0.26% over the past week.
Observing Stablecoin Whales Accumulating Amid Bitcoin’s $30,000 Drop; What Does It Mean for Bitcoin Price?
Data Reveals Whales Accumulating Stablecoin
According to Santiment data, high-value stablecoin wallet holders, commonly known as “whales,” are strategically taking advantage of Bitcoin’s recent drop below $30,000. There has been a shift towards these large wallets in the supply of significant stablecoins like Tether, USDCoin, BinanceUSD, and Dai.
This sharp increase in stablecoin assets among these key players coincides with Bitcoin’s price decline, indicating that whales and sharks may be looking to buy Bitcoin at lower prices in anticipation of a potential recovery. Valuable stablecoins are often used as trading instruments and safe havens during volatile periods in the crypto market due to their price stability compared to cryptocurrencies.
Another Santiment data from this month revealed a significant increase in addresses holding between $100,000 to $10 million worth of DAI and Paxos Standard (USDP) stablecoins since June 27. It also reports that investors have already added 2% of DAI’s total supply since June 27.
How will it affect Bitcoin?
How will this reflect on the future pricing of Bitcoin? Accumulation by whales in Bitcoin is often a bullish signal for the leading cryptocurrency. These significant players can have a considerable impact on the market direction due to their substantial holdings. If these whales decide to convert their large stablecoin holdings back into Bitcoin, the increased demand could provide significant support to Bitcoin’s price.
However, the market should exercise caution. A sudden sell-off by these major holders can lead to price declines, demonstrating their power in the cryptocurrency market. At the time of writing, Bitcoin is trading around $29,390 and has risen by 0.26% over the past week.
