Rising stablecoin supply signals ready dry powder ready for the next move.
The latest crypto news, especially regarding Bitcoin’s performance in October, highlighted significant weakness for the bulls.
This has consequently introduced more uncertainty about the prospects for Bitcoin (BTC USD) price now that November is here.
Despite rising uncertainty, the latest crypto news revealed that top Bitcoin whales have been accumulating.
According to Glassnode data, the BTC addresses holding between 10,000 and 100,000 BTC have been buying the dip.
Prior data showed that large holders had previously been taking profits before October, especially during the bullish months.
This latest data was enough confirmation that top holders were taking advantage of discounted prices. A clear sign that they anticipated more upside in the coming days.
According to the data, this particular class of top whales acquired over 52,500 BTC in October. An amount equivalent to over $5 billion.
This was just one of the signs pointing towards heavy accumulation in October.
Some analysts speculated that most of the top-holder addresses were institutions, given that they are the category with such financial capacity.
Tether might be one of them, following reports that it acquired Bitcoin worth $1 billion on Thursday.
MEXC, one of the top crypto exchanges globally, has been experiencing heavy BTC outflows this year.
In recent crypto news, a CryptoQuant analysis revealed that the exchange registered a significant spike in BTC withdrawals, especially towards the end of October.
The analysis noted that exchange outflows may have been due to accumulation. It was also possible that the outflows might have been driven by rising appetite for self-custody.
Either way, the outflows confirmed that there was significant demand for the cryptocurrency. It also reflected the sustained downtrend observed in the Bitcoin exchange reserves chart.
The latter extended its decline towards the end of October, which was in line with exchange outflows during the month.
Bitcoin (BTC USD) large holder flows demonstrated some accumulation in the last 24 hours. Whales acquired about $4.2 million worth of buys in the spot segment on Binance and Coinbase.
However, the demand from the whales category was still relatively weak, highlighting a lack of excitement.
Derivatives still leaned in favor of the bears, underscoring the cautious investor sentiment.
Aside from whale activity and accumulation by large addresses in October, analysts have been closely watching liquidity flows in the market. Bitcoin stablecoin inflows just registered a massive spike.
The data revealed that Binance received roughly $1.6 billion worth of stablecoin inflows on 31 October. Such movements have historically been observed before major price moves.
Analysts believe that the spike in stablecoin flows may indicate that smart money was preparing to dive back into the market.
Aside from rising stablecoin liquidity, the volatility and heavy liquidations in October led to a massive liquidation reset.
This may explain the prevailing hesitation and uncertainty in the market. However, it also meant that the spot segment had a chance to lead the market without the risk of liquidation-induced volatility.
Bitcoin (BTC USD) price pushed back above $110,000 in the last 24 hours as part of its recovery attempts following a bearish last week of October.
The market sentiment also improved slightly, but was still notably in fear territory.
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