Santiment data vendor has tweeted that whales have been moving around large amounts of dollar-pegged stablecoins as they are taking the "best buying opportunities" to buy Bitcoin and other top cryptos.
Besides, traders' funds are moving back into Bitcoin now as interest in altcoins is dropping along with their prices.
Whale stablecoin transactions increase
According to a tweet posted by Santiment, as the cryptocurrency markets have plunged, whales have been transferring a lot more stablecoins that before—USDT, USDC, BUSD, etc.
The analytics team of the data vendor believes that this indicates that whales are taking their "best buying opportunities" to acquire crypto on the dip—presumably, Bitcoin, Ethereum and other cryptos.
? #Stablecoin whale transactions have increased mildly as #crypto markets have dipped. Just as we see spikes in whale transactions near price tops for non-stablecoins, $USDT, $USDC, $BUSD, $TUSD, and $DAI generally spike during the best buy opportunities. https://t.co/fjwGdjPbRX pic.twitter.com/nTugOgiTpq— Santiment (@santimentfeed) April 7, 2022
Funds moving back into Bitcoin
Another tweet from Santiment says that as interest in altcoins is declining due to a fall in price, traders are turning back to Bitcoin to mitigate volatility on the market. Quite a large amount of altcoins have shown a double-digit decline in price over the past 24 hours.
Bitcoin drops 5%
Over the past 24 hours, the global flagship cryptocurrency, Bitcoin, has lost roughly 5% of its market value, causing the whole crypto market to lose 7.52%, making it drop from $2.131 trillion to $1.971 trillion.
Crypto journalist and blogger Colin Wu has reported that the drop of the BTC price occurred after the discussion made by Fed officials regarding inflation, with another interest rate hike by 50 basis points as a possible option. This made the Nasdaq index drop almost 4.5% within two days and pushed the Bitcoin price down as well.
Recently, Fed officials have widely discussed the inflation situation and the possibility of the Fed raising interest rates by 50 basis points. The Nasdaq fell the most, down nearly 4.5% in two days. Bitcoin has also lost 5% in the past 24 hours.— Wu Blockchain (@WuBlockchain) April 7, 2022