As Bitcoin’s price oscillated around the $33,000 level, some market participants are seeking out Ether and other alts to trade during this period of consolidation.
A long-time BTC whale and crypto trader, who goes by the name Flood, recently tweeted that he is reorganizing his digital asset portfolio. Flood said that he is moving some profits he generated from trading Bitcoin to Ethereum.
Rotating some BTC profits into $ETH, think it plays catchup
— Flood (@ThinkingUSD) June 14, 2021
In hindsight, it is interesting to note that the number of bitcoin whales fell drastically amid the recent bearish cycle for the king coin. As of June 18, there were just 2,163 total bitcoin whales 🐋 (defined as wallet addresses from a single network participant with more than 1,000 BTC). From January 27, the number of BTC whales fell by almost 13% at the time of writing.
What’s the larger market sentiment?
A recent finding from CryptoQuant suggested that Bitcoin whales have started to dispose of some of their holdings. This has made the market “very uncertain,” as per the company’s CEO.
“BTC market is very uncertain right now. Whale selling indicates a bear/fake-bull market, and retail selling implies a bull market. We’re in neutral now.”
However, the current sell-offs by Bitcoin whales did not imply a positive picture for altcoins. Most, if not all the major alts have mimicked BTC’s price movements lately. Ethereum, the second-largest alt by market cap, had risen above $2,500 on June 15 but had lost almost 15% price at the time of writing. Consequently, other major alts like ADA, XRP, DOGE, and BNB had red bars on their 4-hour charts at the time of writing.
On the other hand, some studies highlighted that not all BTC whales were affected by the price drop. Some whales were busy buying Bitcoin (BTC) now that the price of the top crypto has dropped from its ATH of $65,000 to below $35,000.
A report by Santiment noted that Bitcoin addresses holding 100 to 10,000 BTC added a total of 90,000 BTC in the last 25 days and was valued at $3.38 billion at press time. As per the report, this group of BTC holders now accounted for nearly half of BTC’s circulating supply.
“They now hold a 7-week high of 9.11 million BTC, currently worth a total of $366.89 billion at this time, and 48.7% of the total #Bitcoin supply.”
Additionally, weekly Bitcoin outflows from miner addresses have dropped to about $1.7 million, the lowest over the past five months, as per a Glassnode report.