Sharks & Whales Accumulate Stablecoins, Why This Could Be Bullish For Bitcoin
24 Maio 2023 - 9:42AM
NEWSBTC
Data shows the sharks and whales of the largest stablecoins have
been accumulating, something that may turn out to be bullish for
Bitcoin. Sharks & Whales Have Been Loading Up On Stablecoins
Recently According to data from the on-chain analytics firm
Santiment, the sharks and whales have recently improved their share
of the total supply of stablecoins like USD Coin (USDC), Dai (DAI),
and Binance USD (BUSD). The relevant indicator here is the “Supply
Distribution,” which tells us what percentage of a cryptocurrency’s
total circulating supply is being held by which wallet group in the
market. Addresses are divided into these “wallet groups” based on
the total number of tokens that they are holding at the moment. In
the context of the current discussion, the 100,000 to 10 million
coins cohort is of interest. This group naturally includes the
wallets of all the investors who are carrying a balance of at least
100,000 and at most 10 million tokens. As the assets in question
here are USD-pegged stablecoins (meaning that their value is fixed
at $1), the bounds of this range convert to $100,000 and $10
million, respectively. As these amounts are massive, only the
largest of the investors in the market would be sitting on these
addresses. The sharks and whales are two such cohorts that are
large enough to cover these wallets. These groups can be quite
influential in the market, as they have the power to move a notable
amount of coins at once. Obviously, the whales would be the more
important group of the two, as they are the larger cohort. Related
Reading: Santiment Explains How Bitcoin Investor Mentality
Influenced Recent Price Action Now, here is a chart that shows the
trend in the Supply Distribution of these sharks and whales for
three of the most popular stablecoins in the sector: All three of
these supplies seem to have gone up in recent weeks | Source:
Santiment on Twitter As displayed in the above graph, the supplies
of these three stablecoins hit a low back in March, but have since
then observed an increase. This means that sharks and whales of the
respective tokens have been accumulating during this period.
Generally, investors use stables whenever they want to avoid the
volatility associated with other assets like Bitcoin. So, sharks
and whales picking up these coins can be a sign that they have been
exiting the other assets recently. Eventually, however, such
investors who have taken safe haven in stablecoins may exchange
these tokens back for the volatile coins, once they feel that
prices are right to jump in. Whenever these holders swap their
stables, the prices of the assets that they are shifting into can
naturally observe a buying pressure. This implies that the
currently piled-up stablecoin supplies of the sharks and whales can
be looked at as the potential dry powder that may be deployed into
assets like Bitcoin. Related Reading: Litecoin’s MVRV Has Surged,
Why This Is Bearish In the last couple of weeks, the USDC, DAI, and
BUSD supplies of these humongous holders have flatlined, meaning
that they may have slowed down their exit from the volatile coins.
If the trend now reverses and they start scooping up the other
cryptocurrencies with their stables, BTC could possibly feel a
bullish effect. BTC Price At the time of writing, Bitcoin is
trading around $26,700, down 1% in the last week. BTC has erased
the gains from yesterday | Source: BTCUSD on TradingView Featured
image from NOAA on Unsplash.com, charts from TradingView.com,
Santiment.net
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