Category: Cryptocurrency News

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On-chain data shows that Tether (USDT) sharks and whales have been rapidly growing their holdings since Bitcoin’s volatility started. Tether Sharks & Whales Grow Holdings As USDT Exchange Supply Plunges According to data from the on-chain analytics firm Santiment, these large Tether holders are now carrying a total of $16 billion worth of the stablecoin. The relevant indicator here is the “USDT Supply Distribution,” which tells us how the Tether supply is distributed among the various holder groups in the market currently. Investors or addresses are divided into these holder groups based on the total number of coins that they are holding right now. In the context of the current discussion, the key “shark” and “whale” cohorts are of interest, the combined coin range of which can be defined as $100,000-$10 million. Naturally, this holder group would include all addresses on the blockchain that are carrying at least $100,000 and at most $10 million worth of USDT in their balances. Now, here is a chart that shows the trend in the Tether Supply Distribution specifically for the sharks and whales over the last six months: The value of the metric seems to have sharply gone up in recent days | Source: Santiment on Twitter As displayed in the above graph, the Tether addresses holding between $100,000-$10 million have seen their combined supply shoot up recently. Interestingly, this rise has coincided with Bitcoin observing some high volatility due to Binance being sued by the SEC over alleged fraud. Generally, investors use stablecoins like USDT whenever they want to exit volatile coins like BTC. Thus, investors exchanging their assets for stables can be a sign of selling. It’s possible that the latest rise in the supply of sharks and whales has come because of these humongous holders ditching cryptocurrencies like Bitcoin in these uncertain times. Related Reading: Bitcoin Bearish Signal: Dormant 1,433 BTC Moves After 10+ Years However, usually, whenever holders opt for stablecoins instead of exiting through fiat or other means, it means that they are possibly looking to eventually return back into the volatile markets. When such investors finally feel that the prices are right to step back into the other coins, they shift their USDT into their desired asset, thus providing buying pressure on its price. Because of this reason, the stablecoin supply may be looked at as the available buying power for assets like Bitcoin. As the sharks and whales have loaded up on Tether and have taken their supply to a new all-time high of $16 billion, the potential dry powder for BTC has also gone up. It’s unknown when these humongous holders may finally shift back into the cryptocurrency, but when they do, it’s probable that its price would feel a bullish boost. Related Reading: Bitcoin Bollinger Bands Herald Higher Volatility, What’s Next For BTC? The data for the exchange supply (that is, the amount sitting in exchange wallets) of Tether is also shown as rising in the chart. It looks like this metric has gone up while the sharks and whales have been buying, implying that the coins exiting from these platforms are being picked up by these cohorts. BTC Price At the time of writing, Bitcoin is trading around $26,600, down 2% in the last week. Looks like the value of the asset has been moving sideways recently | Source: BTCUSD on TradingView Featured image from iStock.com, charts from TradingView.com, Santiment.net

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ApeCoin (APE), created by Yuga Labs, once soared to great heights, capturing the attention of investors and enthusiasts alike. However, recent developments have cast a dark cloud over the once-promising digital asset. With an astonishing 95% of ApeCoin holders finding themselves deep in the red, the future of this innovative cryptocurrency hangs in the balance. Negative sentiment surrounding ApeCoin has become a prominent concern for its community. Once buoyed by optimism and excitement, investors now face frustration as their holdings plummet in value.  This loss of confidence not only undermines ApeCoin’s credibility but also raises questions about its long-term sustainability. Related Reading: Pepecoin 15% Drop Sparks Speculation: Will Further Pain Follow? Diminishing Network Growth, Trading Velocity Compound APE’s Challenges Founder of NotLarvaLabs, Pauly, has revealed a troubling statistic: an alarming 95% of ApeCoin holders are currently grappling with financial losses, painting a bleak picture for the once-promising cryptocurrency.  Looks like @apecoin is already right around it’s all time low price. Over 95% of the holders are already at a loss. And the @yugalabs team, insiders and “launch contributors” are paying themselves 10s of millions of dollars a month in $ape. See here:https://t.co/toavf11b8v — PAULY (@Pauly0x) June 7, 2023 ApeCoin’s price decline can be primarily attributed to the diminishing growth of its network, which has witnessed a noticeable decrease in interest from new addresses over the past three months. This decline in interest reflects a diminishing enthusiasm for APE among potential investors. In addition to the decline in network growth, ApeCoin’s trading velocity, which measures the frequency of transactions, has also experienced a significant drop during this period. This decline in trading activity further exacerbates the challenges faced by ApeCoin, indicating a lack of liquidity and reduced participation in the market.   Source: Coingecko As per the latest information from CoinGecko, ApeCoin is currently priced at $2.90, with a marginal 24-hour rally of 0.2%. However, the cryptocurrency has undergone a notable decline of 6.6% over the past seven days, underscoring the volatility and uncertainty surrounding its value. Whale Interest Persists Amidst ApeCoin’s Struggles Interestingly, despite the aforementioned challenges, there remains a glimmer of interest in ApeCoin from influential investors known as whales. These large addresses continue to demonstrate their engagement with APE, as evidenced by the increasing percentage of ApeCoin held by them.  This suggests that some prominent investors still perceive potential in the cryptocurrency, although the impact of their involvement on ApeCoin’s overall trajectory remains uncertain. Bitcoin halfway from the $27K territory. BTCUSD chart: TradingView.com MVRV Ratio Declines As APE’s Price Drops The falling price of APE has had a direct impact on its MVRV (Market Value to Realized Value) ratio, indicating that a considerable number of APE holders lack significant incentives to sell their holdings at the current juncture. Related Reading: Polkadot Metrics Surge With Project Launches – Good News For DOT Price? This decline in the MVRV ratio raises concerns about the selling pressure on APE and suggests that many investors are reluctant to part ways with their APE tokens while the price remains low. Meanwhile, the sell-offs by short-term holders could create additional downward pressure on APE’s price and further exacerbate the challenges faced by the cryptocurrency. (This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk) Featured image from iStock

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We know media loves their click and we know how they love to bait it with false and misleading content. But this is some next level stuff. I hate to use the term FUD as most project only use it to ignore legitimate concerns by investors and traders but I can't find any other world…
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