Wanting to Buy the Bitcoin Dip? Best Follow the Whales

Wanting to Buy the Bitcoin Dip? Best Follow the Whales

The current Bitcoin market crash is different from past cycles. Historically, a crypto market crash is largely followed by FUD and massive market sales. According to social data presented by Santiment, “Historically, most turnarounds occur immediately after the average traders have given up hope on crypto.”

Bitcoin whales set the market tone

According to a CoinShares Research Blog, crypto whales have set the tone for the present market. The report data shows that digital asset investment products saw inflows totaling $441 million. 

As per the report, Bitcoin saw $398 million inflows. However, that accounted for only 90% of the total inflows. Investors opted to invest in altcoins. 

“Most notable of which was Solana, seeing US$16m last week, bringing year-to-date (YTD) inflows to US$57m, making it the best-performing altcoin from a flows perspective. Ethereum sentiment seems to have turned, seeing US$10m inflows, but remains the only ETP to have seen net outflow YTD,” the CoinShares report read.

On the other hand, blockchain equity markets did not reflect the improved sentiment, as it experienced additional outflows of $8 million last week.

Santiment reports that traders considering buying the dip should watch out for market rebounds as many investors remain hopeful. The entity adds, “Ideally, one of these dramatic dips is met with FUD and panic.” 

Right now, Bitcoin is worth $56,260, having lost 10.4% value in 7 days. James Butterfill, Coinshares’ head of research, adds that American crypto investors took advantage of the dip to trade investment vehicles.  

America was not the only country witnessing inflows. Hong Kong, Switzerland, and Canada saw $32m, $24m, and $12m respective inflows. However, Germany saw $23m crypto outflows. The German government continues to dump BTC, creating high volatility.


Also Read: Fairlead Strategies Founder Shares Future Outlook of Bitcoin

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Published at Mon, 08 Jul 2024 19:17:22 +0200

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