Altcoin Season Upcoming? On-Chain Activity Shows Surprising Trend
Even as Bitcoin continues to trade at around 75% lower than the all time high, on-chain activity reveals interesting facts about altcoin trading. Significant actions are observed around altcoin movement, in an encouraging sign to th crypto ecosystem. Meanwhile, Bitcoin continues to trade at $21,623 as of writing, nearly flat in the last 24 hours, according to price tracking site CoinMarketCap.
Whale Activity With Altcoins In Central Exchanges
According to crypto trading data provider CryptoQuant, there are significant actions in altcoins on several exchanges. This is despite a relatively quiet atmosphere around Bitcoin, as analyzed with on-chain movements. It is abundantly clear from the analysis that whales are accumulating altcoins in exchanges.
In the last few days, there was a slight jump in Bitcoin price. However, that does not seem to be the reason behind altcoin accumulation by whales. One of the more likely reasons is over the counter trading with other whales by using custody services. Also, the whales could also have opened a long or short position by using the altcoins as collateral, as per CryptoQuant analysts.
Other reasons could be an upcoming altcoin project in crypto exchanges. Liquidation of crypto hedge funds could also be boosting altcoin activity. These instances are less likely to have spurred altcoin buying as it is rare to see whales depositing holdings to exchanges at these prices.
Whales Think Bottom Is Nearing?
This altcoin accumulation also gives rise to doubts around bottom prediction. While the crypto winter sentiment in the industry is still around, widespread expectations are on around further reduction in Bitcoin price. In the last few days, Bitcoin price surge gave a relief to altcoin investors.
In the last 7 days, XRP price surged by 8.31%, while that of Ethereum (ETH) went up by 17.06% over the same time period. The prices of Solana (SOL) on the other hand, grew by as much as 14.98%.
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