Crypto Whales are Secretly Buying The Dump | BTC or Altcoins?

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Crypto Whales are Secretly Buying The Dump | BTC or Altcoins?

WARNING. We have entered the most bearish month in the history of Bitcoin. But smart money or what we know as crypto whales are busy buying the recent dump. 

Which 3 cryptos are crypto whales buying the most and why? Let’s find out

1) wBTC

We all know that recently Bitcoin’s price has basically gone nowhere. Yet, some whales are accumulating wBTC. As you can see here a whale has accumulated over 3100 wBTC which equals almost $80 million worth. You can check out the wallet here on DeBank if you want to follow this or other whale wallets.

If you aren’t familiar with DeBank, you should check it out. They are also the team behind the awesome Rabby Wallet that crushes Metamask for user experience. They have some excellent on-chain tools, too. But back to wBTC. We know the biggest differences between wBTC are:

  1. It’s not the original BTC but a wrapped version for EVM chains. We rely on exchanges and custodians like BitGo to be sure there is Bitcoin to cover the wrapped Bitcoin. AND
  2. Because it’s EVM compatible. Unlike regular Bitcoin, we can use it on EVM platforms to trade or earn interest while we HODL.

So what does this imply if whales are buying wBTC and moving it off of exchanges? It means that they are comfortable buying at these levels and holding longer term. They are putting their money to work in DeFi while they wait. It’s definitely a positive for Bitcoin. Yet, the fact that they are buying more wBTC than regular BTC is a little bit of a divergence from the norm. So we will be watching that.

2) USDT

Stablecoins are back in the conversation. Most investors lowered their holdings in the top six stablecoins over the last 18 months. The market cap dropped by 25% as a result, indicating that investors sold their positions.

However, data indicates something noteworthy is happening. Since August 22, 2023, the capitalization of stablecoins has increased by $660 million. In other words, throughout the downturn, investors purchased more stablecoins. And USDT has been the most preferred.

Crypto traders often use stablecoins as a store of value. So, during bearish markets, whales frequently accumulate stablecoins. And this is because they offer protection for their assets. However, the market is now unsettled as a result of the SEC’s decision to postpone Bitcoin spot ETFs. 

As a result, some whales are delaying their stablecoin purchases. This is because they are unsure of the market’s potential for recovery. We are talking in the very, very short term. Some people have been more cautious and have only amassed a small number of USDT.

Whales’ purchasing power often signals a market bounce. And we see this in an increase in their stablecoin holdings. Buying lots of stablecoins is a sign that whales plan to return to the market at an advantageous time. This can boost prices.

While we await more clarity and direction, it’s good to stay on the safe side. So, buy as much stablecoin as your risk appetite can tolerate.

3) XRP

The XRP market has seen a considerable number of large-scale transactions lately. And this has garnered a lot of interest from the wider crypto community. On September 1, XRP whales carried out transactions totaling over a billion XRP. This is according to data from blockchain tracker Whale Alert. 

Whale Alert tweeted that the XRP market saw four significant whale transactions. The largest of these transfers involved 424,354,912 XRP, worth $214,293,666 in total. It took place between two unidentified wallets. Unknown wallets, in this sense, refer to addresses that are not connected to any exchange. 

Additionally, 19,920,318 XRP worth $10,167,904 were transferred from an unidentified wallet to Binance. Additionally, a whale sent 66,666,659 XRP, valued at $33,065,809, from an unidentified wallet to Binance. However, Ripple’s transaction raised the most attention. Ripple is the company behind the XRP. 

So, Ripple transferred 75,000,000 XRP, or $37,058,145, from its Binance wallet to an unidentified address. The crypto payment company is known to release 1,000,000,000 XRP at the beginning of every month. Then, it locks up roughly 80% of the new tokens. So this shouldn’t give any cause for alarm. Well, no more cause than usual.

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Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.

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