- High-value stablecoin wallet holders are strategically benefiting from Bitcoin’s recent drop below $30,000.
- Another Santiment data for this month revealed a significant increase in DAI and paxos standard (USDP) addresses holding between $100,000 and $10 million in stablecoins since June 27.
- At the time of writing, Bitcoin is trading around $29,390 and has risen by 0.26% since last week.
Bitcoin’s drop to $30,000 is observed as an accumulation period for stablecoin whales; what does it mean for the Bitcoin price?
Data Shows Accumulation of Stablecoins by Whales
According to Santiment data, high-value stablecoin wallet holders, commonly known as “whales,” are strategically benefiting from Bitcoin’s recent drop below $30,000. There has been a shift towards these large wallets in the supply of significant stablecoins such as Tether, USDCoin, BinanceUSD, and Dai.
The sharp increase in stablecoin assets among these key players coincides with the price drop of Bitcoin, indicating that whales and sharks may be able to buy Bitcoin at lower prices with the expectation of a potential recovery. Stablecoins, which are valuable due to price stability compared to cryptocurrencies, are often used as a trading tool and safe haven during volatile periods in the crypto market.
Another Santiment data for this month revealed a significant increase in DAI and paxos standard (USDP) addresses holding between $100,000 and $10 million in stablecoins since June 27. It also reports that investors have already added 2% of DAI’s total supply since June 27.
How Will It Reflect on Bitcoin?
How will this affect the future pricing of Bitcoin? The accumulation of Bitcoin by whales often signals a bullish trend for the leading cryptocurrency. Large players can have a significant 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 can provide significant support to the price of Bitcoin.
However, the market should be cautious. A sudden Bitcoin sell-off by these large holders can cause a price drop, demonstrating the power of these assets in the crypto market. At the time of writing, Bitcoin is trading around $29,390 and has risen by 0.26% since last week.
