By Michael Scott
Bitcoin and crypto army optimistic of post-Christmas dip recovery amid massive stablecoin deposits.
The daily charts show that the crypto market is struggling to shake off the dip, which is attributed to the uncertainty caused by the hawkish posture of the Federal Reserve heading into next year. Although the digital assets offered optimism of staging recovery on December 25, a sharp correction witnessed on Boxing Day extinguished hopes of a Christmas rally.
Crypto analytics firm Santiment Feed labels the uncertainty as temporary, as the activity of investors offers hope for immediate recovery.
Whales Accumulating Before Recovery?
Bitcoin staged a 7% leap on Christmas Day to exchange hands at $99,900 to escape the Fed-led slump that saw the Christmas Eve floor price at $93,500. However, the hopes of finishing 2024 with a strong recovery from the recent market dip became short-lived.
On Boxing Day, Dec. 26, the pioneer asset would surrender most of the Christmas gains as it tumbled to $95,000, leaving the broader market in the red zone. Despite the wild swings witnessed, Santiment Feed maintains the crypto market retains bullish undercurrents per the recent whale activity.
In its Dec. 27 X post, the analytic firm observes that investors with extensive BTC holdings executed huge stablecoins deposits to the exchanges as the Fed-led rout intensified. Scrutiny into the centralized exchange deposit dashboard reveals sustained loading up of additional crypto assets.
Santiment Feed points out that seven deposits estimated above $9 million were executed within the past 24-hour timeframe. The platform added that the highest transaction value was $50 million.
The analytics platform clarified that though the deposits could target the likely farming of the Binance launch pool token, the emergence of large stablecoin transactions signals hope for the crypto.
Santiment explained that it sheds a strong sign of whales gearing up to purchase, likely to elevate the prices. Nonetheless, the firm admitted it is unclear when the whales intend to execute the purchases.
The Santiment Feed pronouncement aligns with the CryptoQuant chief executive Ki Young Ju’s confirmation that the crypto bull market is ongoing.
Billions Flow into the Crypto Market
On Thursday, Dec. 26, Young Ju illustrated that the recent capital inflows into the crypto market signaled the sector has bullish steam left in its tank.
The analyst emphasized that the revelation of whale accumulation hardly sends shockwaves across the crypto space as it did three years ago. Nonetheless, such moves conform the market is yet to hit the bubble.
The CryptoQuant chief considers the bubble when the crypto prices surge higher than the capital flowing into the market. Citing on-chain data, he notes that a $7 billion inflow hit the crypto markets.
The CryptoQuant chief indicates that BTC is yet to approach the cycle top. The analyst premised the argument to its “true” market value relative to the realized value (MVRV) ratio.
The true MVRV chart assesses the deviation in the BTC market value relative to the realized value to indicate the average price at which Bitcoin tokens last moved. It excludes assets considered lost for over seven years.
Similar to the standard MVRV, it measures the extreme movement in the Bitcoin price, identified as market tops and bottoms. Young Ju’s chart positions the MVRV at 1.8, affirming it is healthy and showing no signs of overheating.
Bitcoin Expirations Signal Bullish Outlook
The digital market closes in 2024 with substantial expiration of Bitcoin options and a bullish outlook heading into the new year.
A recent X post by Greek.Live shows $18 billion options expired to mark the last significant expiry in 2024 as Bitcoin and Ethereum saw contracts of large volume conclude. Notably, the 150K Bitcoin options expired valued at $14.17 billion.
The contracts reached their conclusion with a Put-Call Ratio of 0.69 suggesting more call options trading, unlike put options. It suggests investors lean toward the bullish market outlook.