Bitcoin has lost the critical $60,000 level and the market sentiment seems to be turning red. However, amidst these difficult and troubled times, Brian Q from Santiment appeared on the Thinking Crypto podcast and explained the activities of Bitcoin whales during the period of market volatility. According to the data, Bitcoin whales who hold large amounts of Bitcoin are accumulating more altcoin when the general sentiment is bearish.
Bitcoin whales are starting to accumulate altcoin
The cryptocurrency market has been on red alert after Bitcoin lost the critical $60,000 level. However, during this difficult period, Brian Q from Santiment revealed the activities of Bitcoin whales during this volatile period on the Thinking Crypto podcast. According to the data, Bitcoin whales who hold large amounts of Bitcoin are continuing to accumulate more Bitcoin even as the general market sentiment is bearish. This accumulation, while not overly aggressive, shows that wallets holding 10 or more Bitcoins have increased their holdings in the past three months.
For example, wallets that held 16.15 million BTC on June 3rd now hold 16.18 million BTC, adding an additional 34.2k Bitcoin during a period when prices were quite volatile and bearish. While smaller addresses are selling, whales are taking advantage of the low prices, and this has historically worked in their favor. When Bitcoin corrects, altcoins usually follow suit and experience even sharper declines. Over the past week, Bitcoin fell by around 1.5%, while Ethereum fell by 2%. However, altcoins like Solana and Toncoin took a bigger hit, falling by 7% and 15% respectively. According to the expert, whales are turning to these altcoins that have been bleeding during the decline.
Altcoins are performing poorly
This performance decline in altcoins is common during times when Bitcoin’s price is volatile, but it also presents buying opportunities. If Bitcoin can return to levels closer to the $60,000 level, it could be a good time to enter the altcoin market. Another important metric to track is the Average Deposited Dollar Age, which tracks the average age of coins in wallets. When this number drops, it means that old wallets are putting coins back into circulation, which is often the case during a bull run. This was evident during the big bull runs in late 2020 and again in late 2023.
If this metric starts to drop again, it could signal a healthy influx of new coins into the market, potentially showing upward momentum for Bitcoin. Watching this decline could provide a strong buy signal for investors looking for a long-term perspective.
To stay up-to-date with the breaking news, follow us on Twitter, Facebook, and Instagram. Join our Telegram and YouTube channel
