Whales are accumulating bitcoin, what does this mean for the market?
Binance spot trading volume soars on whale purchases of BTC.
Despite the bitcoin (BTC) bear market, there are signs of significant buying by large whales, CryptoQuant CEO Ki Young Ju noted on Twitter. These BTC purchases could indicate that there are entities that are seeing an investment opportunity at current prices, below USD 20,000.
Binance’s spot BTC trading volume rose to 84% of the total, Young Ju noted, while in a distant second place is Coinbase, at 9%.
The chart below, published by CryptoQuant, shows the evolution of spot trading volume on Binance (mustard) and Coinbase (blue). BTC spot volume on these two exchanges currently accounts for 93% of the total volume.
Bitcoin spot volume dominance. Source: Ki Young Ju / Twitter.
Whales are accumulating #BTC on @Binance. Since the #Bitcoin price hit the $20,000 level, @Binance’s spot trading volume dominance has skyrocketed and is now at 84% [of total traded]. The second largest is Coinbase, 9%. I’m not sure if these whales are institutions using prime brokers, or it’s Crypto OG.
Ki Young Ju, CEO of CryptoQuant.
Crypto OG is a bitcoin jargon term denoting market participants who acted in the initial moments of trading. The acronym OG, not without humor, stands for “original gangsters”.
The growth in bitcoin spot volume over the past six months would be indicating that there is enough demand to offset selling pressure. This has kept the price of bitcoin about 60% below its value at the beginning of the year.
For the French analyst of the bitcoin market, Professor Chaine, there are several signs that would be indicating the formation of a minimum in the price of bitcoin, as various media have indicated these days. For the fourth time in Bitcoin history, the basis cost of holdings by short-term investors (STH) has fallen below the basis cost of long-term investors (LTH). This same interaction of the two curves has been reported by several experts in the cryptocurrency environment.
However, it is important for the reader to understand that the performance of Bitcoin still depends on what happens with the global economy, the war in Ukraine, inflation in the United States and Europe, and the monetary policy of the main central banks.
