By George Ward
Crypto Market’s Ups And Downs
Last year was challenging for the fledgling crypto industry as it battled to stay afloat following a series of unpleasant scenarios. Events like the Terra Luna fallout, the Ukraine-Russia war, and the FTX crypto exchange collapse made it difficult for leading crypto assets such as Bitcoin and Ethereum to salvage their lost value.
Even though the leading cryptocurrency, Bitcoin, has dropped 62% from its 2021 high of $69,000, many crypto “Whales” have continued to accumulate this digital asset as they believe it is still a store of value.
These whales’ buy or sell activities are vital because they affect the prices of these digital assets. This is important for retail digital asset holders because the whales’ activities can affect the value of their investments.
According to experts, the market could be volatile in the coming months due to the broader macroeconomic impact on the sector. Experts advise market participants to pay close attention to the market trajectory before making any investment decision.
Whales And Sharks’ BTC Holdings Reach Record Numbers
Per recent data published by crypto analytic platform, Santiment, the holdings of Bitcoin’s (BTC) largest holders have reached a new high following recent large volume accumulation. The Santiment data further revealed that wallets containing more than 10 BTC had been steadily growing.
The report added that since February 2022, 11,806 new addresses now hold at least 10 BTC, bringing the total number of Bitcoin whales to 157,000. However, the surge in market participants’ interest and buying activity hasn’t triggered a massive spike in the asset’s value.
Despite the massive accumulation, BTC’s price continue to trade within a narrow range. Santiment revealed that this trend reflects investors’ growing confidence in Bitcoin, who choose to accumulate rather than sell their holdings. Accordingly, analysts anticipate how the increased accumulation of these whales and sharks will impact the overall dynamics of the market in the future.
Can Bitcoin Sustain Its New Rally?
Despite encouraging sentiment about the United States Securities and Exchange Commission (SEC) decision not to appeal the Grayscale’s court victory regarding the latter’s application to turn its GBTC into Bitcoin ETF, BTC has struggled to break through the $27K price barrier.
Recent market activity, occasioned by low volatility and trading volume, suggests investors are still undecided about their next steps. Upcoming macroeconomic factors this week suggest that BTC may experience a spike in trading activity and volatility and break free from its current trading range, which it has struggled to do over the last seven days.
The leading digital asset has started the week on a positive note, gaining 4.7% in the last 24 hours and trading at $28,139 at the time of writing, according to Coingecko data. As a result, investors are expected to keep a close eye on these developments in the coming days.