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Wallets with investments above a certain amount are classified as whales in the cryptocurrency markets. This group has a significant impact on price movements. Moreover, this group represents more experienced investors and companies. Their collective movements are crucial in predicting future price points. So, what are crypto whales doing?
Crypto Whales
On-chain data often provides more reliable results than technical analysis. CryptoQuant analyst SignalQuant recently presented a comprehensive evaluation of the current state of the markets based on on-chain data. SignalQuant referred to the UTXO Value Bands metric, which shows that whales gradually return to life in 2023 after a rapid retreat in the second half of 2022.
In one of CryptoQuant’s Quicktake blog posts on July 16, they wrote the following:
“While the whale group increased along with the price in 2019, it is also gradually increasing along with the price in 2023. If the indicators continue to rise, we can be more certain that 1) the price at the end of 2022 was a long-term bottom and 2) the price will continue to rise.”
Crypto Bull Begins
Recent on-chain data shows that the supply of BTC moves more at around $30,000 compared to other price points, reflecting a critical point of interest among investors. According to Look Into Bitcoin, around the $30,200 region, a total of 3.8% of the supply moved. At the same time, dormant supply, which has been inactive for a long time, is also coming back to life. According to Philip Swift, the founder of Look Into Bitcoin, this has been a characteristic feature of the early stages of every Bitcoin bull market so far.
“The increasing on-chain spending volume shows where we are in the cycle. History doesn’t repeat, but the situation does.”
While many technical analysts expect a short-term pullback, they believe that the price will continue to rise in the medium and long term. This view is supported by the upcoming halving and the possibility of the Fed starting interest rate cuts until the second half of the year. On the other hand, if the SEC approves a spot Bitcoin ETF, it will likely announce the good news around these dates.
