Crypto Whales Make Huge Moves as Altcoins Eye a Bounce Back

SNEAK PEEK

• Large individual transactions can cause significant price movements in cryptocurrencies.
• The timing of such transactions can be significant, as the impact may not yet be baked in.
• Investors should exercise caution and do their due diligence when investing in cryptocurrencies.

In the midst of a crypto market downturn, traders are on the lookout for signs of an impending rebound. One proven successful strategy is monitoring whale transactions, particularly those involving altcoins moving from exchanges into self-custody. As such, crypto analytics platform Santiment is set to release a new model to identify and track these transactions. 

A recent chart has revealed that large individual transactions in cryptocurrencies can significantly impact their prices. Based on the past three months of data, the chart shows spikes in prices for assets that had recent top 10 most significant individual transactions. The higher the spike, the larger the transaction was in USD.

The chart also highlights the importance of the black area bar, which represents transactions that have just happened today and have the best chance of impacting prices. The small, skinnier bars represent days earlier in the week, with the bar’s color corresponding to the legend at the top.

Bitcoin, shown on the left of the chart, has two transactions completely off the axis due to massive wallet moves to Coinbase and various new wallets approved by the Department of Justice earlier this week. The chart suggests that it may not be a coincidence that markets began to dump after the $666 million Bitcoin transaction was made on March 7th.

This chart serves as a reminder that large individual transactions can significantly impact cryptocurrency prices. Investors should note large transactions and monitor the market accordingly to make informed investment decisions.

The cryptocurrency market is known for its volatility, and the impact of large transactions on prices only reinforces the need for caution when investing in these assets. As always, investors should do their due diligence and consider the potential risks before investing in cryptocurrency.

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• Source: https://investorbites.com/crypto-whales-make-huge-moves-as-altcoins-eye-a-bounce-back/