October provided the much needed kick-off to Bitcoin and Ethereum price hikes. The two assets notably created local highs over the past two days.
At the time of writing, however, Bitcoin is trading at the edge of $ 60,000, while Ethereum has been seen trading hands at $ 3.7,000. In fact, the price of the two large cap coins seemed to be heading further south, indicating insufficient momentum in their respective markets.
Whales to the rescue?
Large Bitcoin rallies in the past have been led by whales, and it looks like the same would happen this time around, too. Consider This – The number of Bitcoin addresses holding 100 to 1k BTC has grown to over 250 in the past five weeks alone. This equates to a cumulative slope of 2%.
Considering the large amount of coins held, these addresses are generally considered a proxy for whale addresses. From the chart attached above, it can be clearly seen that a majority of whales resisted the previous market correction. Conversely, only a minority of large HODLers got rid of their parts.
Also, the 2% increase in the number of addresses has come at a faster pace compared to other periods in the recent past, which is a pretty good sign.
Additionally, according to data from CryptoQuant, the relative size of the top 10 inflows to total inflows for all exchanges has declined since the last week of September. Whenever this number decreases, it indicates the whale selling pressure is declining.
On the other hand, when it comes to Ethereum, the number of HODLing addresses 100-1k ETH tokens remained stagnant in the same 5 week time window.
That said, it’s also worth noting that the current number of addresses is quite reminiscent of May’s numbers, just as Bitcoin’s current numbers are in line with April’s. Whales have rarely helped Ethereum during uptrend phases in the recent past. Thus, the current unattractive figures do not pose a major problem.
Additionally, the exchange reserve numbers for Bitcoin and Ethereum have been seen turning quite close to their all-time lows at press time. So, to a large extent, it can be said that the new Bitcoin whales have already started their buying spree.
If the same thing continues, they might be able to reverse the trend on the short term price chart. Ethereum, on the other hand, is expected to rely more on the participation of retailers to achieve the same feat.
Overall, the actions of the whales would prove to be more convenient for Bitcoin than for Ethereum.