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According to Santiment data, in a significant move, high-value stablecoin wallet holders, famously known as “whales” have been strategically capitalizing on Bitcoin’s recent dip below the $30k mark. Key stablecoins such as Tether, USDCoin, BinanceUSD, and Dai have all seen a shift in supply towards these major wallets.
Whales Adding Up Stablecoins
The sharp increase in stablecoin holdings among these key players coincides with Bitcoin’s price dip, suggesting that whales and sharks may be buying Bitcoin at lower prices in anticipation of a potential rebound. Stablecoins, valued for their price stability relative to other more volatile cryptocurrencies, are often used as a medium of exchange and a haven during periods of volatility in the crypto market.
Another set of Santiment data from this month revealed a large increase in DAI and paxos standard (USDP) addresses holding between $100,000 and $10 million in stablecoins since June 27. Additionally, the market intelligence site reports that since June 27 investors have already added 2% of the entire supply of DAI.
How does this translate to Bitcoin’s future pricing? The accumulation of Bitcoin by whales often signals a bullish trend for the leading cryptocurrency. Major players, due to their significant holdings, can wield considerable influence over the market direction. If these whales decide to shift their large stablecoin holdings back into Bitcoin, the increased demand could provide a substantial boost to Bitcoin’s price.
On the other hand, the market cap of these stablecoins is down. The global market cap of Tether is down by 0.03% in 24 hours. The market cap of USDC is down by 0.05%, and the same of BUSD is down by 0.02% in a day.
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Is A Bitcoin Correction Ahead, Before The Bull Run?
However, the market must tread cautiously. A sudden sale of Bitcoin by these large holders could result in a price drop, demonstrating the power these entities hold in the cryptocurrency market. At the time of writing, Bitcoin is trading around $29,388, down by 1.2% from last week.
Also Read: XRP Lawyers, Coinbase CLO Share Significance Of Judge Torres’ Ripple Ruling
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