According to CryptoQuant CEO Ki Young Ju, Bitcoin whale inflows are decreasing.
The drop in whale activity suggests high-net-worth investors are not currently selling large amounts of BTC. For decentralized finance tokens that have been underperforming, it could serve as a lifeline.
The sharp pullback of the DeFi market coincided with brutal Bitcoin and Ethereum rejections at key resistance levels.
If the Bitcoin price stabilizes due to slowing the whale activity, it could buoy the Defi market towards recovery.
Could improving Bitcoin whale activity offset short-term bearishness?On September 21, Ki said Bitcoin would likely face short-term bearishness.
The simultaneous drop of BTC and ETH caused the DeFi market to plummet, causing most DeFi tokens to drop 40%.But according to Ki, fewer whales are seemingly selling BTC across major exchanges.
"Fortunately, whale inflows seem to be decreasing. It seems the $BTC price follows the traditional market lately. I think the only thing we can do with on-chain data at this moment is to watch whale moving. Most of the fundamental on-chain indicators are healthy."
Other fundamental factors, including the Bitcoin blockchain network's hashrate, show that the overall sentiment around the BTC market remains positive.
DeFi tokens show signs of recoveryAlthough the DeFi market remains down by 40% to 50% on average, major DeFi tokens are showing signs of stabilizing.
As long as Bitcoin avoids a drop below $10,000 as some technical analysts suggest, historical cycles show DeFi tokens are likely to rebound.
CEO: Dropping whale inflows positive for Bitcoin, lifeline for DeFi market?
Publicado en Sep 24, 2020
by Cryptoslate | Publicado en Coinage
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