Whales accumulate stablecoins- Here’s why its bullish for Bitcoin
- Over $228 million in stablecoins left the exchanges as whale accumulation intensified.
- Bitcoin is poised for accumulation as it trends around $30,000.
Traders are keeping a close eye on the current Bitcoin price range, while the actions of the whales are capturing particular attention. These players appear to be increasingly interested in the price trend as they intensify their accumulation of stablecoins. Considering this recent surge in stablecoin accumulation, will we also witness a surge in BTC accumulation?
Read Bitcoin (BTC) Price Prediction 2023-24
Massive Bitcoin and altcoin accumulation looming?
Recent data from Santiment revealed a noteworthy surge in the accumulation of stablecoins, specifically Maker DAI and USDP, on 12 July. Santiment’s distribution supply chart, which tracks the range between 100,000 and 100 million coins, recorded increased stablecoin holdings. In the case of DAI, approximately 2% of its entire supply has been added since 27 July. Also, USDP witnessed an addition of around 11% since 2 July.
According to Santiment, this accumulation suggested preparations for a significant future crypto purchase, potentially involving the accumulation of Bitcoin.
Additionally, an analysis of stablecoin netflow on Crypto Quant showed a prevailing outflow trend on 12 July. The total observed outflow surpassed $228 million, indicating that traders were actively accumulating stablecoins, corroborating the statistics provided by Santiment.
Number of Bitcoin holders to trend upward
Recent reports indicated a growth in the number of Bitcoin addresses, indicating an increasing user base joining the network. The ongoing surge in stablecoin accumulation could potentially contribute to further growth in the user count.
Another metric that is likely to experience an uptick once the accumulation begins is the number of holders. According to data from Santiment, the total number of holders has been steadily increasing since the beginning of the year. Notably, the chart suggested that more holders were added as the price of BTC rose. Currently, the total number of holders is nearly 48 million, showing no signs of a downward trend as of this writing.
BTC flashes bull and bear trends
On 12 July, a daily analysis of Bitcoin revealed that the price briefly surpassed the $31,000 mark but ultimately closed at $30,486, incurring a loss. As of this writing, Bitcoin was trading near $30,600, exhibiting a modest gain of less than 1%.
How much are 1,10,100 BTCs worth today
The overall trend appeared to be predominantly sideways, with key support levels identified around the $29,000 and $28,000 price ranges. The short Moving Average (depicted as the yellow line) represented one of the supports at the $28,000 level.
The Moving Average Convergence Divergence (MACD) indicator showed a bearish divergence. Simultaneously, the Relative Strength Index (RSI) indicated a bullish trend at the time of writing.