The cryptocurrency market has been experiencing significant turmoil, with Bitcoin losing the critical $60,000 level, causing widespread concern among investors. However, during these challenging times, insights from Brian Q of Santiment on the Thinking Crypto podcast shed light on the behavior of Bitcoin whales amidst market volatility. According to the data presented, these large-scale holders of Bitcoin are increasingly accumulating altcoins when the general market sentiment turns bearish.
Bitcoin Whales Are Starting to Accumulate Altcoin
The loss of the $60,000 level by Bitcoin has put the entire cryptocurrency market on high alert. Despite this downturn, Brian Q from Santiment has provided valuable insights into the actions of Bitcoin whales during this volatile period, shared on the Thinking Crypto podcast. The data indicates that Bitcoin whales, who hold substantial amounts of Bitcoin, are continuing to accumulate more Bitcoin even in a bearish market. This accumulation, although not overly aggressive, demonstrates an increase in holdings by wallets that contain 10 or more Bitcoins over the past three months.
For instance, wallets that held 16.15 million BTC on June 3rd now possess 16.18 million BTC, adding an additional 34.2k Bitcoins during a period marked by volatile and bearish prices. While smaller addresses are offloading their holdings, whales are capitalizing on the lower prices, a strategy that has historically benefited them. When Bitcoin undergoes correction, altcoins typically follow suit, experiencing even steeper declines. Over the past week, Bitcoin fell by approximately 1.5%, while Ethereum saw a 2% drop. However, altcoins like Solana and Toncoin suffered more significant losses, falling by 7% and 15% respectively. According to experts, whales are turning their attention to these altcoins, which have been significantly affected during the decline.
Altcoins Are Performing Poorly
The decline in altcoin performance is not uncommon during periods of Bitcoin price volatility, but it also presents potential buying opportunities. If Bitcoin manages to rebound closer to the $60,000 level, it could signal a favorable time to enter the altcoin market. An important metric to monitor is the Average Deposited Dollar Age, which tracks the average age of coins in wallets. A decrease in this number indicates that older wallets are reintroducing coins into circulation, a trend often observed during bull runs. This was particularly evident during the significant bull runs in late 2020 and again in late 2023.
If this metric begins to decline again, it could signify a healthy influx of new coins into the market, potentially indicating upward momentum for Bitcoin. Observing this trend could provide a strong buy signal for investors seeking a long-term perspective. Staying informed about these metrics and market trends is crucial for making well-informed investment decisions.
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