A recent campaign of large stablecoin deposits by whales is raising hopes for Bitcoin and a broader market recovery following the latest pullback.
Crypto markets have shown signs of uncertainty in recent weeks following the hawkish posture of the Federal Reserve by 2025. While the market gave hope of a recovery with a gathering on Christmas Daya sharp correction that followed on Boxing Day again raised doubts.
Amid Uncertainty, Leading Crypto Analysis Platform Food Santiment argued that there was hope in the activity of a closely watched crypto investor class.
Whales preparing to accumulate?
On Christmas Day, December 25, 2024, Bitcoin soared to $99,900, up 7% from its Christmas Eve low of $93,500 amid a Fed-induced crisis. But hopes of a recovery from the recent market crisis were likely short-lived.
Notably, on Boxing Day, December 26, the asset lost most of its Christmas gains to trade at just $95,000, taking the broader crypto market with it. Despite the wild fluctuations, Food Santiment argued that the crypto market still exhibits bullish undercurrents, citing whale activity.
In an X post On Friday, December 27, the company noted that this class of crypto investors with large holdings were increasingly moving more stablecoins to exchanges after the most recent drop, according to its main centralized dashboard of crypto deposits. exchange, presumably to load up on more crypto assets.
Food Santiment noted that in the last 24 hours alone, there have been at least seven such deposits worth more than $9 million, with the highest being worth $50 million.
The company argued that although some of these deposits are likely intended for the exploitation of a new Binance Regardless, the dominance of the Launchpool BIO Protocol (BIO) token on the dashboard of such large stablecoins bodes well for the crypto market.
“This is a strong sign that whales are preparing for some purchases, which can drive up prices across the entire market,” Santiment wrote, although it’s unclear when these whales intend to start making these purchases.
Yet Santiment Feed’s recent statements match those of CryptoQuant CEO Ki Young Ju’s opinion that the crypto bull market is still active.
Billions pour into the market
On Thursday, Young Ju argued that the crypto bull market is still alive despite recent uncertainties. The analyst expressed this view, citing capital inflows into the market.
Young Ju pointed out that while news of whale accumulation might no longer send shockwaves through the crypto space like it did two or three years ago, these measures confirmed that the market was not not yet in a bubble.
He argued that a bubble occurs when prices are significantly higher than capital flowing into a market. On the contrary, he noted that $7 billion was flowing into crypto markets every week, citing on-chain data.
The CryptoQuant chief further claimed that Bitcoin appears far from its cycle high, highlighting the asset’s “true” market value to realized value (MVRV) ratio.
The real MVRV chart shared by Young Ju measures the gap between Bitcoin’s market value and realized value, which is the average price at which coins were last moved, excluding coins considered lost for more seven years old.
Like standard MVRV, the metric is used to measure extremes in the price of Bitcoin, often referred to as market highs and lows. The chart shared by Young Ju puts the MVRV at 1.8, which is considered healthy and not overheated.
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