The price of Bitcoin (BTC) struggled to overcome the $40,000 resistance over the weekend and is currently trading just above $38,000. While BTC is hovering around 40% of its all-time high, the whales are starting to collect more stable coins.
Whale stablecoins with portfolios ranging from 10,000 to 10 million Tether (USDT) have amassed more than $1 billion in purchasing power over the past month, according to Santiment. The data shows that the purchasing power of these whales has increased by more than 7% in just one month.
Purchasing power is defined as the ability of a stack coin to buy bitcoins and thus increase the price. When the price of bitcoin is low, stable supply can buy a large share of the circulating supply of BTC, which causes the price to rise, and thus purchasing power becomes high, and vice versa.
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A large accumulation of whale stablecoins indicates that they are waiting to buy BTC at a lower price, indicating a bullish outlook for the market. The flow of BTC from exchanges also supports this mood. Out of the last 26 weeks, 21 of them have seen more bitcoin outflows from stock exchanges than they actually are.
Bitcoin Exchange Flow Balance Source: Santiment
The close correlation between Bitcoin and the S&P 500 is also seen as one of the reasons for the current weak price momentum, while gold has risen to a multi-week high. However, the price momentum is very similar to the first half of 2021, when gold outperformed BTC in the first two quarters, while BTC maintained a close correlation with the stock market.
BTC vs. XSP vs. Gold Price Source: Santiment
In the middle of the third quarter, BTC cut ties with the stock market and climbed to new highs, while gold fell to new lows.