There is a significant flow of liquidity from wallets to exchanges, indicating that the ETH whales may have decided to shed their tokens. Meanwhile, BTC long-term holders are already hoarding as the bearish market ends, evident in the higher volume of transfers from exchanges.
Many believe the Ethereum network will be able to address speed and scalability issues after the Merge. Therefore, gas fees that had previously blown minds could have decent levels with the Bellatrix upgrade on September 6th.
However, the whales express their disbelief at the upcoming event and a further rise in the value of Ether (ETH).
According to the on-chain analytics platform Santiment, there is a significant flow of liquidity from wallets to exchanges. Top non-exchange addresses are constantly liquidating their holdings, indicating that the whales may have decided to shed their tokens.
Santiment pointed out that wallets have dropped by almost 11% over the last few days. Likewise, addresses on the top 10 exchanges have seen a significant influx, increasing the trading volume by nearly 20%.
Although the whales seem unsure of the next ETH price rally, many expect the tokens dependent on the event to prosper. Lido DAO (LDO), an ETH 2.0 liquid staking protocol, and Optimism, an aggregator for the Ethereum network, are also ready for a significant recovery.
It is important to remember that Ethereum Classic (ETC) is having a bullish impact due to the exit of the Ethereum miner. As the Merge approaches, hazy clouds have surrounded the ETH price rally, suggesting that the event may not be bullish due to high gas fees.
The Bitcoin Whales Predict the End of the Bearish Market
The crypto market did not receive the decision of the US Federal Reserve (Fed) to raise interest rates amid rising inflation well. However, the failure of Bitcoin (BTC) to exceed USD 25,000 has come as macroeconomic concerns continue.
After initially showing bullish indicators, Bitcoin is expressing negative sentiment, struggling to keep its value above USD 20,000.
The price of BTC has dropped by almost 68.9% from its all-time high of USD 69,044 in November 2021. The pioneering cryptocurrency should be between 75% and 82% below its previous high in a bearish market.
Bitcoin fell to an all-time low of around USD 3,800 in early 2020 following the 2017 bullish run. After that, it rose to its all-time high in November 2021.
According to Glassnode, the whales (high-volume investors) are already hoarding BTC as the bearish market ends. When Bitcoin registered its best performance of 2022 in July, the volume of transfers from exchanges reached 137,390.
The Whales Might Continue to Hoard Bitcoin
The recent market volatility has halted the buying spree of the Bitcoin whales, but they may continue hoarding until December. When investors believe the market will recover, they usually withdraw their assets from the stock market.
The accumulation of BTC by the whales might lead the price to gain momentum and exceed the USD 1,000 range channel before reaching USD 28,000.
After a drop, the number of addresses with 1,000 BTC or more also stabilized at 2,134. Support at USD 20,800 might serve as a springboard for a bullish breakout, causing the price of Bitcoin to rise.
By Alexander Salazar
