Crypto

‘Monster Bull Move’ Means Whales Could Secure the Next Bitcoin Price Increase

'Monster Bull Move' Means Whales Could Secure the Next Bitcoin Price Increase

Whales may have the opportunity of securing the next Bitcoin price spike thanks to a “monster bull move.”

While whales attempt to hedge exposure to the Federal Reserve this week, a traditional bull run forecasting metric becomes “full bull.”

The purchasing and selling habits of Bitcoin (BTC) whales have been the focus of attention this week, as the Bitcoin (BTC) price story has been split.

According to new research from on-chain analytics firm CryptoQuant, derivatives investors are leading the way in bullish Bitcoin wagers.

Bulls are favored by a “sick” BTC price indication

The buy/sell ratio on Deribit, a prominent derivatives trading platform, increased significantly in the second half of November, and this, according to contributing analyst Cole Garner, is a sure sign that price action will react positively in the short term.

“I have found on Deribit Exchange that the ratio of market buys and sells of perpetual is a sick leading indication,” he said.

The data is consistent with other recent exchange observations, which show that whale interest has persisted during the price decline from all-time highs.

Exchange reserves are at 4 years lows, implying that exchanges have less Bitcoin on their books than at any moment since the previous all-time high of $20,000 in 2017.

The Federal Reserve is putting pressure on BTC positions

Stablecoins, on the other hand, are the polar opposite. Redemptions of those set new all-time highs this week, implying that whales are hedging their exposure to BTC.

“The ATH is indicated by the redeemed stable coin index” (All-Time High). “I’m not sure if the whales are cashing out ahead of the market’s volatility in response to the FOMC decision on December 16th, but that’s another unknown,” CryptoQuant writer Dan Lim explained.

The United States Federal Reserve will meet this week to send signals on the future of quantitative easing in the form of asset purchases, which could have far-reaching implications for both macro and crypto markets.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.