Are Crypto whales playing and riding the current Fear sentiment?
Bitcoin whales bought 71,000 Bitcoin during the crypto market downturn earlier this month, making it the fastest rate of accumulation since April 2023. Data from CryptoQuant highlights that Bitcoin whales are now stacking Bitcoin at the quickest pace (on a 30-day moving average) since April 2023, shortly after several U.S. banks collapsed.
Crypto Whales and Market Downturns: A Perfect Storm:
Whales will and can take advantage as follows:
Accumulation: Whales with substantial financial resources can purchase large amounts of cryptocurrency at discounted prices during market downturns.
Market Manipulation: While illegal in most jurisdictions, some whales might engage in manipulative tactics to drive prices down further before buying at rock-bottom prices. This is a risky and unethical practice.
Leveraged Shorting: Whales can use leverage to amplify their profits during downturns by shorting cryptocurrencies. However, this strategy also carries significant risks.
