Data provider Santiment tweeted that whales are moving around large amounts of dollar-pegged stablecoins as they use “best-buy deals” to buy Bitcoin and other cryptocurrencies. Also, traders’ funds are now returning to Bitcoin as interest in altcoins has plummeted along with their prices.
Whales buy stablecoins, funds turn to Bitcoin (BTC)
According to a tweet by Santiment, as crypto markets plummet, whales buy USDT, USDC, BUSD, TUSD and more. It transfers far more than US dollar-pegged stablecoins like DAI. According to Santiment, this shows that whales are using buying opportunities to buy cryptocurrencies such as Bitcoin and ETH from the bottom.
As we have previously reported as Cryptokoin.com, Stablecoins are Any cryptocurrency designed to have a relatively stable price, typically by being pegged to a commodity or currency or regulated by an algorithm. Another tweet from Santiment says that interest in altcoins has waned due to the price drop, and traders are turning to Bitcoin to reduce market volatility.
What is the latest situation in the market?
Meanwhile, quite a large amount of altcoins have seen a double-digit drop in prices over the past 24 hours. This decline, of course, came after the depreciation in BTC. It is a well-known phenomenon in the cryptocurrency market that altcoin prices often follow BTC. Bitcoin even hit $42,727 daily on Binance before bouncing a bit and climbing above the $43,000 level where it is currently trading around $43.5K.
The largest cryptocurrency has lost a total of 7.5 percent on a weekly basis, although the majority of this decline has come in the last two days. It is also worth noting that almost $100 million worth of liquidated BTC positions have been seen in the last 24 hours alone, the majority of which are naturally long-term, representing more than 82 percent of total liquidations according to Coinglass data. The overwhelming majority of altcoins are trading well in the red. This resulted in a significant loss of market value across the market.
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