According to Santiment data, large altcoin transfers signal whales’ intention to sell, while Bitcoin’s rise limits the impact of these moves.
According to data provided by Santiment, some large altcoin transfers have attracted attention recently.
When examining the altcoins deposited on centralized exchanges, the largest transfers included Eigenlayer ($2.8 million), Ethena ($2.5 million), Worldcoin ($2.0 million), Wrapped Bitcoin ($4.8 million), Pepe ($3.0 million), and Chainlink ($1.8 million). These large transfers occurred when a large portion of the supply of the relevant altcoins was suddenly transferred to the exchanges.
Such large transfers are often interpreted as a sign of a sell-off by a whale (i.e. a large investor). When a large portion of an asset’s supply is suddenly sent to exchanges, this has always raised concerns that selling pressure will increase in the asset’s market.
Bitcoin’s ongoing rally could limit the impact of these large transfers to some extent, but Santiment noted that this could lead to temporary corrections or price drops, especially for the altcoins on the list.
Investors should be wary of sudden price movements in these projects and be wary of potential pullbacks.
Stay tuned.