Whales Shift Focus to Stablecoins, Signaling Expectations of Market Volatility

According to on-chain analytics provider Santiment whales are now focusing on stablecoins like USDC and DAI instead of buying more Bitcoin . This suggests that these influential investors are holding onto stablecoins which gives them more purchasing power in the future . Around 37% of portfolios with holdings between $100,000 and $10 million have USDC while 39% have MakerDAO’s DAI stablecoin . In comparison only 6 .4% of these portfolios include Binance USD (BUSD) and there is no data available for Tether (USDT) holdings .

Whales Adjust Strategies in Response to Possible Market Volatility and Bitcoin’s Price Changes

Whales are choosing to accumulate stablecoins since mid-April which coincided with Bitcoin’s price reaching a peak of $31,000 in 2023 . This move by whales may be a sign that they expect further price drops in the cryptocurrency market or that they want to make short-term bets against Bitcoin . Additionally fewer people are trading on exchanges which indicates that more users prefer to hold onto their assets rather than actively trading . This lower trading activity on exchanges can contribute to increased volatility in the market .

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