By: Eliza Bennet
As the crypto market faces a dip, there is distinctive behavior observed among Bitcoin and Ethereum holders. Smaller cohorts have been seen to sell, whereas larger Bitcoin holders, or 'whales', are choosing to accumulate more Bitcoins. In particular, long-term holders (LTHs, those who hold Bitcoin for more than 155 days) are beginning to send profits to exchanges. Meanwhile, short-term holders (STHs, those who hold Bitcoin for less than 155 days) exhibit more erratic behavior, transferring a substantial amount at a loss.
These market trends are also noticeable in the Ethereum market. Larger investors are strategically accumulating, buying at lower prices and selling at higher valuations. These movements suggest a bullish sentiment on the future of these cryptocurrencies, despite speculative market downturns. Crypto analysts urge investors to watch these trends as they provide insights into potential future movements in cryptocurrency markets.
These market activities transpired as Bitcoin's daily trading volume fell from over $40 billion last Friday to about $26 billion. Furthermore, the impending Bitcoin halving could play a crucial role in rebalancing market dynamics, potentially tipping the balance towards demand over supply. Following current market indicators, it is suspected that Bitcoin may face further corrections in the short term.
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