Whales and sharks accumulating stablecoins: Will Bitcoin and Ethereum continue their choppy trend?
May 24, 2023Story Highlights：
The major tokens continue to trade sideways as a huge drop in the trading volume has been recorded that has negatively impacted the volatility.
In the meantime, the sharks and whales end up accumulating stablecoins, finding it a safe haven amid the uncertain environment.
The Bitcoin price is again juggling around the gained levels, which has become a new trend for a couple of months. It indicates that market participants are unsure of the upcoming price movement. As the BTC price continues to maintain a sluggish trend, altcoins also prefer to stay within their comfort zones. Hence, the whales and the sharks have now found a better place to invest, stablecoins.
After reaching an interim high of around $27,495 during the last trading day, the BTC price again began to drop hard. This squashed the expectations of the traders, as the token is constantly failing to rise to regain levels within the bullish pattern. Therefore, the whales have now shifted their focus to stablecoins.
As per the data from a popular on-chain analytical platform, santiment , the sharks and the whales have been constantly accumulating stablecoins. They aim to increase their buying power in the future, and hence they are currently holding USDC, BUSD, and DAI in their wallets, varying from $100K to $10M.
The shift in focus on stablecoins has been witnessed for a long time as the market capitalization of Tether (USDT) began to surge. According to the data from Defilama, the USDT dominance among the other stablecoins has been rising for a month, while the market caps of USDC and BUSD have witnessed a significant drop.
Therefore, it is quite evident that the market participants, now aim to remain safe under these extremely volatile conditions and hence opt to accumulate stablecoins. Therefore, they may wait for the markets to flip from the bearish influence that may compel them to jump back to Bitcoin, which may lift the price from the prevailing consolidation then. Until then, one can expect choppy BTC price movement for an extended period.
By Qadir AK | Original Link