How Bitcoin’s whales and sharks can take advantage of ‘oversensitive’ retailers
The post How Bitcoin’s whales and sharks can take advantage of ‘oversensitive’ retailers appeared on BitcoinEthereumNews.com.
Bitcoin wallets holding more than 10 BTC have surged over the past few months As economic conditions become uncertain, some retailers are avoiding the market to leave behind just whales and sharks Despite the market turbulence and volatility over the past month, Bitcoin [BTC] has seen some impressive resilience on the price charts. This can be evidenced by the fact that every single time BTC has depreciated, its buyers have pushed it closer to $96k once again. However, the current state of the U.S economy is once again affecting crypto investors, especially retail traders, leading to potential further volatility. This, because retail traders are highly sensitive to news and other macroeconomic developments. On the contrary, whales tend to behave differently and at times, view the dip as a good opportunity for accumulation. Bitcoin whales and sharks benefit from retail’s fear According to Santiment‘s latest analysis, whales and sharks are benefiting from retail traders’ fear of collapse. The retail crowd usually assumes that history repeats itself by comparing recent news to previous price performance under similar circumstances. For example, in 2022, Bitcoin’s decline of over 50% was attributed to the Fed combating inflation and aggressively raising interest rates. Thus, retailers are naturally fearful of a major drop repeating itself because of recent inflation and the Fed’s failure to lower rates. Retailers being oversensitive to inflation and interest rate hikes are allowing whales and sharks to scoop up coins with little market resistance. Source: Santiment Every time the price retraces on the charts, whales and sharks get back into the market and buy the dip as retailers avoid the market. During the 2022 bear market, for instance, whales and sharks were behaving as retailers are currently behaving. Thus, in 2022, wallets with over 10 BTC reduced their holdings as interest rates rose.…
Filed under: News - @ February 22, 2025 10:17 am