Santiment suggests that the stimulus for the pump comes from small rather than large wallets.
Traded for US$ 68.3 thousand (+ 1%) in the early afternoon of this Monday (4), Bitcoin BTC R$ 429,206 showed high intraday volatility. A movement that tends to increase this week due to the reaction of sardines and whales to the elections in the United States.
This is what the on-chain monitoring and intelligence platform Santiment suggested in a post made on X, as small and large cryptocurrency investors are keeping an eye on “the results of a particularly polarizing election (to say the least)” and “ cryptocurrency traders 'expecting the unexpected'".
On the other hand, although the recent BTC price spike above $72,000 coincided with increased accumulation by large cryptocurrency wallets, this correlation (whale holdings/BTC price) is not necessarily a rule.
According to the graph presented by Santiment, it is possible to see, for example, that at the beginning of August, whales were accumulating while Bitcoin suffered a bloodbath after a fall in Japan and the increased risk of recession in the USA.
Whales were also accumulating in early September as Bitcoin struggled to maintain resistance at US$56,000 with further fears of a bloodbath before the release of the payroll, a report on non-agricultural payrolls in the largest global economy, which serves as indicator of inflation and the strength of the economy.
Santiment used the chart to highlight that whale transaction spikes are often “reliable predictors of potential price reversals for all cryptocurrencies.” On the other hand, the opposite is not always true, namely:
Whales’ passivity does not require prices to fall, as this is a common misconception. Instead, it usually indicates that they are waiting for the crowd to react to an event and waiting for the volatility that smaller traders [sardines] create before joining the party.”
While sardines and whales are agitated, an expert points out two altcoins to profit up to 200% in November and the price of Bitcoin's new upward leg, as reported by Cointelegraph Brasil.
