Bitcoin has started the day with a negative dynamic. At press time, the largest cryptocurrency by market cap is trading at $26,474.29 (-1.94%), according to CoinMarketCap.
Chart of the USD/BTC trading pair from EXANTE
For its part, Ethereum has fallen to $711.28 (-1.94%), while XRP has dropped by 20.81% and is now trading at $0.227.
Ki Young Ju, head of the analysis platform CryptoQuant, has said the relatively low number of “whales” that are ready to sell their Bitcoins on crypto exchanges opens the door for an increase in the price of the currency.
According to the company’s observations, the proportion of large Bitcoin holders depositing their assets in exchanges has decreased over the past few days. For its analyses, CryptoQuant uses its own “whale rate,” which is calculated as the ratio of the 10 largest Bitcoin transactions per hour to the total deposit.
According to analysts, the value has recently fallen below 85%. Between December 8 and December 22, it was above this mark, when the “whales” allegedly withdrew their profits taking advantage of the rise in the price of the crypto. On Sunday, the price of BTC rose to new highs of around $28,400.
Ju says that asset inflows from major shareholders are declining:
“I believe the recovery will continue as institutional investors continue to buy and the exchange rate for whales remains below 85%.”
At the same time, analyst Willie Wu has drawn attention to the fact that the decline in the number of Bitcoins in cryptocurrency exchanges that has been observed since the beginning of this year has recently come to a halt:
“This indicates the completion of the re-accumulation stage in the current macro-cycle. If this cycle repeats the previous one, then the amount of Bitcoins in exchanges will grow, as retail investors, attracted by the price increase, will start to join en masse.”
According to CoinMarketCap’s ranking, 4 currencies on the top 10 are in green.
As for the market cap of all currencies listed in CoinMarketCap, it stays at $711,385,666,360.
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