Whales Drive Crypto Recovery: Bitcoin Back Above $57K, Ethereum Reclaims $2.5K
Bitcoin (BTC), Ethereum (ETH), and the broader cryptocurrency market have staged a remarkable recovery following Monday’s significant downturn.
After briefly dipping to the $49,000 mark on August 5, Bitcoin has since rebounded and is now trading at $57,375. Similarly, Ethereum, which fell as low as $2,100 on the same day, has regained ground, trading at $2,519.
Resilient Market Sentiment Despite Broader Economic Uncertainties
Data from Santiment indicates that market participants played a crucial role in driving this recovery over the past 30 hours. Analysts are attributing this rapid rebound to large-scale investors, often referred to as whales, who have been actively accumulating these assets.
On-chain data from CryptoQuant reveals that over the past 30 days, more than 404,000 Bitcoins have been transferred to long-term holder addresses. Ki Young Ju, CEO of CryptoQuant, described this trend as “a clear sign of accumulation.” Additionally, Ki highlighted significant inflows of approximately 40,000 Bitcoins into U.S. spot exchange-traded funds (ETFs) during the same period.
Moreover, Ki noted that long-standing whales, specifically those who have held their positions for over three years, have not engaged in major selling activities. These whales had already offloaded their holdings to new whales between March and June.
Despite the prevailing bullish sentiment, Ki cautions that potential macroeconomic risks could trigger forced sell-offs. He pointed to large deposits from entities like Jump Trading as examples and noted that while some on-chain indicators have turned bearish, they remain on the borderline.
In the face of growing concerns about the future of the crypto market following the recent crash, Ki remains optimistic, asserting that the bull market is still intact.
“If the market doesn’t rebound within two weeks, I’ll reconsider my stance. I follow smart money, so if I’m wrong, it would imply that the new whales have either misjudged or underestimated the broader macroeconomic environment,” he said.
A recent report by CoinGecko further supports Ki’s optimism. The report stated that the market crash during the COVID-19 pandemic was significantly more severe than the recent sell-offs.
“Over the past decade, the most significant global crypto market correction was the -39.6% crash on March 13, 2020, during the COVID-19 pandemic. […] In contrast, the largest sell-off this year occurred on March 20, 2024, with a far less severe drop of only -8.4%,” the report stated.
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