Data Shows Bitcoin, Stablecoin Whales are Making Big Moves into Exchanges
Exchange data from this week shows Bitcoin and stablecoin whales alike are moving huge amounts of their holdings into exchanges – suggesting bigger moves for the crypto market ahead.
Bitcoin, Stablecoin Inflows Surge
The crypto-bullrun is back, and some say it’s stronger than ever before. While this sentiment remains to be proven, what’s seemingly apparent is that crypto bigshots are plotting a move in the market in the coming weeks.
Ki-Young Ju, the CEO of on-chain data and charting firm CryptoQuant, tweeted Friday that BTC whales are sending Bitcoins to exchanges, while stablecoin whales are sending [thier assets] to exchanges as well.
He added that this week will be a battle between “stablecoin and Bitcoin exchange inflows,” which in turn indicate potential buy/sell pressures.
#BTC whales are sending Bitcoins to exchanges. #Stablecoin whales are sending stablecoins to exchanges as well.
This week will be a battle between Stablecoin and Bitcoin exchange inflows. These inflows indicate potential buy/sell pressures. https://t.co/15iFYpf48t pic.twitter.com/ijCB7B44v0
— Ki Young Ju (@ki_young_ju) July 30, 2020
Ju’s personal opinion was that “stablecoin inflows will eventually win.” He did not provide any further explanation for this, save that such inflows will be available for charting on the CryptoQuant platform later next week.
However, Ju did note an overall bullish sentiment for the Bitcoin market in the coming months on a tweet:
“I think the BTC bull market will start soon. Average Exchange Withdrawals value is going down and about to touch the retail investor-level threshold.”
Historically, whales moving huge crypto amounts do mean volatility in either direction; they can either sell their holdings or unlock new capital to tap into altcoins.
Bitcoin Sentiment Turns Positive in the Mainstream
Fundamentally, Bitcoin has received some mentions in mainstream media and prominent asset management firms the past week – setting the course for a positive sentiment around the pioneer cryptocurrency.
On July 30, $2 trillion asset management firm Fidelity said there are five reasons why Bitcoin will turn out an aspirational store-of-value in the long run.
In a report titled “Bitcoin Investment Thesis: an Aspirational Store of Value,” the firm pointed out an increase in monetary and fiscal stimulus will appeal to investors as a “new type of fixed supply asset as protection against potential inflation or low-interest rates, but with significant growth potential – Bitcoin.”
It added that deglobalization, spurred by economic and political trends, could create inflation as global supply chains break down. Bitcoin stands to benefit from this trend.
The firm concluded the world is “undergoing a “great wealth transfer” from baby boomers (and those older than them) to the younger generations,” and that cryptocurrencies appeal to the latter more than the former.