spot_imgspot_imgspot_img

Big Whales Accumulating Stablecoin: What Does This Mean for Bitcoin?

  • 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

bitcoin-balina (1)

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.

stablecoin-accumulation-on-bitcoin-dip

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.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news

spot_imgspot_imgspot_imgspot_img

Latest News

US Dollar’s True Nemesis: Fiscal Irresponsibility, Not Bitcoin, Warns Top Economist

According to economist Daniel Lacalle, the US dollar faces a significant threat from within due to unsustainable fiscal policies, overshadowing the perceived risk from cryptocurrencies like Bitcoin.

Bitcoin Profitability Soars to 97%, Highest in Over Two Years

Bitcoin's remarkable price surge has propelled the majority of BTC addresses into a profit zone not seen in over two years, highlighting the cryptocurrency's strong market performance and promising future.

Morgan Stanley Eyes Bitcoin ETFs for Indirect Crypto Exposure

Morgan Stanley's recent SEC filing to gain Bitcoin exposure through ETFs marks a significant step towards integrating cryptocurrencies into traditional investment portfolios, potentially boosting the adoption and price of Bitcoin.

Bitcoin ETF Surge: BlackRock and Fidelity Lead with 79% of Inflows into the ‘Newborn Nine’

This article delves into the explosive growth of Bitcoin ETFs, highlighting the market dominance of BlackRock and Fidelity, the impact of fee reductions among competitors, and the broader implications for the cryptocurrency investment landscape.

Bitcoin, The 21st Century’s Berkshire Hathaway, Says SkyBridge’s Scaramucci

In a bold statement, Anthony Scaramucci of SkyBridge Capital compares Bitcoin to Berkshire Hathaway, suggesting that the cryptocurrency holds significant long-term value and wealth generation potential akin to the conglomerate led by Warren Buffett.
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Ethereum Breaks $3K as Rally Continues: What’s Next for ETH?

This article dives into Ethereum's recent surge past $3,000, analyzing the technical indicators and market dynamics driving its ascent and future prospects.

Will Bitcoin Rise To $50,000? Current BTC Analysis

Bitcoin is trading at $48,400 and may rise to $50,777 if it closes above $48,200. However, caution is advised in the range of $50,777 - $52,000. Corrections are common in the crypto market, so careful consideration is necessary before spot investments.

Where is the Solana Rise Target? Current SOL Analysis!

Solana is trading near the $108 resistance on the 8-hour chart, with a potential target of $111.84 if it surpasses this level. However, caution is advised in the $111.84 - $117.20 resistance range on the 6-hour timeframe.

Medium Term Ethereum Technical Analysis! What Awaits Its Investors?

When examining the medium-term technical chart of Ethereum, strong buying pressure is observed, pushing the price up from the $2139 support to the $2350 region. However, for the price to sustain its upward movement, it needs to surpass the $2407 resistance.

Can Bitcoin Fall To $35,000 Levels? Current BTC Analysis

When examining Bitcoin's 5-day technical chart, the analysis from January 18 is ongoing, indicating a continued downward movement from the $48,189 level. Bitcoin needs to close 5-day candles above the $44,200 resistance to gain momentum for an upward trend. 
Lucien Renard
Lucien Renardhttps://en.coinotag.com/
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.
spot_imgspot_imgspot_imgspot_img

US Dollar’s True Nemesis: Fiscal Irresponsibility, Not Bitcoin, Warns Top Economist

According to economist Daniel Lacalle, the US dollar faces a significant threat from within due to unsustainable fiscal policies, overshadowing the perceived risk from cryptocurrencies like Bitcoin.

Bitcoin Profitability Soars to 97%, Highest in Over Two Years

Bitcoin's remarkable price surge has propelled the majority of BTC addresses into a profit zone not seen in over two years, highlighting the cryptocurrency's strong market performance and promising future.

Morgan Stanley Eyes Bitcoin ETFs for Indirect Crypto Exposure

Morgan Stanley's recent SEC filing to gain Bitcoin exposure through ETFs marks a significant step towards integrating cryptocurrencies into traditional investment portfolios, potentially boosting the adoption and price of Bitcoin.