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The pattern of Bitcoin whales accumulating the cryptocurrency BTC/USD seems to have come to a pause, as per insights from a well-known analyst.
What Occurred: Ali Martinez, a prominent analyst, shared on the social media platform X (formerly Twitter) the observation that Bitcoin accumulation by whales has ceased. Martinez’s post featured a chart illustrating the accumulation trend score, which serves as an indicator of the on-chain accumulation behavior of significant entities.
With the accumulation trend score hitting zero, Martinez interprets this as a signal that whales are either distributing Bitcoin or refraining from accumulating it at current levels.
”#Bitcoin accumulation trend score has dropped to zero, indicating that whales are distributing or not accumulating $BTC at the current levels!” remarked Ali.
The Accumulation Trend Score is a metric that reflects the amount of Bitcoin being acquired or sold on-chain by different entities. It factors in the entities’ Bitcoin holdings size (participation score) and whether they are increasing their holdings or selling them over the past month (balance change score).
A score nearer to 1 implies that larger entities or a substantial portion of the network are accumulating Bitcoin, while a score closer to 0 suggests they are selling or not adding more. This metric aids in understanding the size and behavior of market participants concerning Bitcoin accumulation in the recent month, as per Glassnode Academy.
Whales, known for holding significant amounts of Bitcoin, can wield considerable influence on the market through their accumulation or distribution actions. Any alteration in their behavior could potentially indicate a shift in the market’s trajectory.
See Also: Cathie Wood Suggests Holding 6 Ethereum (ETH) Could Lead to Millionaire Status
Significance: The news of Bitcoin whales halting their accumulation arrives amidst ongoing debates on the cryptocurrency’s future value. Despite recent corrections, a Standard Chartered analyst has forecasted a more than 100% surge in Bitcoin’s value by the close of 2024. This projection, coupled with the whale behavior adjustment, might signal a notable transformation in the market dynamics.
Moreover, BRICS nations are exploring stablecoins and CBDCs to lessen their dependency on the U.S. dollar, potentially impacting the global cryptocurrency market. Concurrently, meme coins are gaining popularity, with a trader predicting that at least three meme coins will surpass a $100 billion market cap.
Nonetheless, some traders have voiced apprehensions about the current market status, with one cautioning that the market might be overvalued and the ongoing cycle may not be as favorable as the preceding one.
These developments, coupled with the alteration in whale behavior, hint at a potential significant shift in the cryptocurrency market.
Price Movement: As per data from Benzinga Pro, Bitcoin is presently valued at $66,843, reflecting a 0.64% uptick over the past 24 hours. Notably, it has surged by 51.33% since the year commenced.
Read Next: Trader Predicts ‘At Least 3 Meme Coins Above $100B Market Cap’: Here’s Which Coins Benzinga Followers Liked The Most
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