Individual investors are shedding Bitcoin while whales are heavily investing in Ethereum: Details
As retail investors are moving to liquidate their Bitcoin holdings, the appetite of whales for Ethereum is increasing, reflecting a clear division in market behavior and future trends.
Data from the ‘CryptoQuant’ platform indicates a significant rise in Bitcoin flows from short-term holders to the Binance platform, with the weekly moving average jumping from around 10,000 to over 36,000 Bitcoins by the end of July.
This increase suggests an intention to sell, especially with the recent rise in prices that has prompted individual investors to take profits.
This coincided with a drop in the price of Bitcoin to about $114,000 on August 1.
In contrast, whale wallets withdrew over $900 million worth of Ethereum from centralized exchanges on July 31, which is typically understood as long-term accumulation and a transfer of assets to cold wallets, away from immediate market volatility.
These moves occurred amid the stability of U.S. interest rate policy, which has rekindled institutional interest in cryptocurrencies.
While individual investors tend to reduce their exposure to the market in anticipation of upcoming volatility, major investors benefit from the clarity of the macro outlook to bolster their long-term positions, leading to market dynamics.
