Even though Bitcoin continues to trade around 75% below the all-time high, on-chain activity reveals some interesting facts about altcoin trading. Significant action is being seen around the altcoin movement, in an encouraging sign for the crypto ecosystem. Meanwhile, Bitcoin continues to trade at $21,623 at the time of writing, almost flat over the past 24 hours, according to price-tracking site CoinMarketCap.
Whale activity with altcoins in central exchanges
According to crypto trading data provider CryptoQuant, there are important actions in altcoins on several exchanges. This despite a relatively calm atmosphere around Bitcoin, as analyzed with the on-chain movements. It is very clear from the analysis that whales are accumulating altcoins in exchanges.
Over the past few days, there has been a slight increase in the price of Bitcoin. However, this does not appear to be the reason for whale hoarding of altcoins. One of the most likely reasons is over-the-counter trade with other whales using guard services. Furthermore, whales could also have opened a long or short position using altcoins as collateral, according to analysts at CryptoQuant.
Other reasons could be an upcoming altcoin project in crypto exchanges. The liquidation of crypto hedge funds could also boost altcoin activity. These instances are less likely to have spurred altcoin buying as it is rare to see whales depositing holdings on exchanges at these prices.
Do the whales think the bottom is approaching?
This accumulation of altcoins also raises doubts about the prediction of the bottom. While the crypto winter sentiment in the industry is still there, widespread expectations are around a further reduction in Bitcoin price. The last days, Bitcoin price surge gave relief to altcoin investors.
Over the past 7 days, the price of XRP has surged by 8.31%, while that of Ethereum (ETH) has increased by 17.06% over the same period. Solana (SOL) prices, on the other hand, rose by 14.98%.
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