While the hamsters are in a hurry to get rid of the leading altcoin, frightened by the fall of the market, the whales are accumulating ETH.
Analyst firm Santiment reports that huge amounts of ETH are moving into whale wallets. Ethereum holdings on exchanges are falling. This means that whales are buying up ETH faster than retail investors are selling it. The ratio of OTC holdings of ETH to holdings on exchanges has reached an all-time high, notes Santiment. The firm analysts state:
– The amount of Ethereum held by the top 10 NON-EXCHANGE whale addresses has now ballooned to 25.7 [million] ETH held. Meanwhile, the top 10 EXCHANGE whale addresses continue falling, with only 3.57 [million] ETH. This ratio is the highest since the asset’s inception.
Thus, off-exchange whales hold over $83.39 billion of ETH, while exchanges hold less than 14% of what the whales hold, less than $12 billion of ETH.
Santiment also compared the mention of a bull market and a bear market on social media. Such information indicates the sentiment of retail investors. The firm claims:
– Our social trends data confirms that the trading crowd feels very much as though crypto is in an official bear market.
From this, it is concluded that “weak hands are capitulating”. As for the whales, they are more cautious than in October or November. Large transactions over $100K have declined for both bitcoin and Ethereum. On average, about 13 thousand transactions over 100K are recorded in the bitcoin network every day. On the Ethereum network, this figure is 9,000 per day, according to Santiment.
From the data of the analytical firm, it follows that now it is the whales who rule the market. They are cautious players who are not prone to sudden movements. Therefore, the market will be less volatile in the near future. In addition, the behavior of the players is influenced by the Chairman of the Fed Jerome Powell’s statement.
During his second term hearing, Powell confirmed that the Fed is about to publish a report on the possibility of issuing a central bank digital currency (CBDC) as an alternative to cryptocurrencies. The report was supposed to be released back in September 2021. Then the market also got frozen. Now the horizontal dynamics of the market means that players are looking forward to this report publishing, although it will not contain final decisions.