- Bitcoin’s dominance is increasing due to recent Spot Bitcoin ETF approvals in the US and Hong Kong.
- Despite Ethereum’s weak price performance, whales are notably shifting large amounts of stablecoins into ETH, indicating they see it as undervalued.
- Bitcoin whales remain active too, with significant purchases in the last 24 hours indicating a bullish outlook for BTC’s near-term value.
Despite growing Bitcoin dominance and concerns around Spot Ether ETF approval delays, whales are buying up large amounts of ETH, on-chain data shows.
Bitcoin dominance has been steadily rising for the past few months, on the back of the Spot Bitcoin ETFs which have been recently approved in the US and Hong Kong. Rising BTC dominance is usually seen as a negative indicator for altcoins, especially the largest of them – Ethereum.
Related: Crypto Analyst Pav Hundal Shares His Perception of the Market in His Weekly Technical Insights
When Bitcoin dominance rises, it garners a larger portion of the crypto market cap, typically during market uncertainty or when viewed as a safer, more profitable investment. This shift diverts attention and investment away from altcoins.
As a result, altcoins may experience lower investment, decreased liquidity, and increased volatility, leading to price declines. Additionally, high BTC dominance can psychologically influence investors to switch from altcoins to Bitcoin, expecting better returns, further depressing altcoin prices.
Whales Scoop up BTC and ETH
Despite this, whale buying activity suggests that large scale investors are starting to see ETH as undervalued.
Notwithstanding Ethereum’s lacklustre price performance, capital invested by these large investors has recently increased. Particularly noteworthy is the shift of large amounts of stablecoins into ETH by these whales in April.
Additionally, Lookonchain reports that a whale has been actively trading Ethereum (ETH), withdrawing 6,030 ETH (US$18.09M) from Binance recently, and accumulating a total of 10,758 ETH (US$32.14M) since 2 May.
This investor converted the ETH to staked ETH (stETH) and deposited it into the Aave platform, from which they borrowed US$28.5 million (AU$43.17 million) in stablecoins to purchase more ETH.
And Bitcoin whales are not idle either, Santiment reports. As BTC experiences a period of relative stability, trading within a narrow range between US$61K (AU$92K) and US$64K (AU$97K), significant activity has been observed among BTC whales.
The analysts added that over the past days, these major players have engaged in noteworthy accumulation strategies. Specifically, wallets holding between 1,000 and 10,000 BTC have collectively purchased approximately US$941 million (AU$1,425 million) worth of Bitcoin.
This substantial buying spree has propelled their total holdings to the highest levels seen in the last two weeks. This trend indicates a bullish sentiment among these influential market participants, suggesting they may be anticipating a potential increase in Bitcoin’s value in the near future, Santiment concluded.
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Source:
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