October gave the Bitcoin and Ethereum price rallies the much-needed kick-start. Both assets have mostly hit local highs in the past few days.
However, at the time of writing, Bitcoin was trading on the brink of $ 60,000 while Ethereum traded hands at $ 3.7,000. In fact, the price of both large-cap coins appeared to be moving further south, suggesting a lack of momentum in their respective markets.
Whales to the rescue?
Major Bitcoin rallies have been led by whales in the past and it looks like the same is going to happen this time around. Keep this in mind – the number of Bitcoin addresses with 100 to 1,000 BTC has increased by more than 250 in the last five weeks alone. This corresponds to a cumulative gradient of 2%.
Given the large amount of coins held, these addresses are usually viewed as proxy for whale addresses. From the graph attached above, it can be clearly seen that the majority of whales survived the previous market correction. Conversely, only a minority of the big HODLers got rid of their coins.
In addition, the 2% increase in addresses has been faster 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 been declining since the last week of September. Whenever that number goes down, it indicates the decrease in whale selling pressure.
On the other hand, as far as Ethereum is concerned, the number of addresses HODLing 100-1k ETH tokens has stagnated in the same 5 week time window.
However, it should also be noted that the current number of addresses is reminiscent of the numbers from May – just like the current numbers of Bitcoin are congruent with those of April. Whales have rarely helped Ethereum during uptrend in the recent past. Therefore, the currently not so appealing numbers do not give much cause for concern.
In addition, at press time, stock market reserves for both Bitcoin and Ethereum were fairly close to their all-time lows. So one can say that the new Bitcoin whales have already started their buying frenzy.
If the same continues, they can potentially reverse the trend on the short term price chart. Ethereum, on the other hand, would have to rely more on retail involvement to accomplish the same feat.
Overall, whale actions would prove more practical for Bitcoin than for Ethereum.