Has the entry of online whales triggered a rebound in the cryptocurrency market after its decline?

The weekend saw a widespread decline in cryptocurrency assets due to the tension in the Middle East. However, several Hong Kong financial institutions announced on Monday that they had received approval from the Hong Kong Securities and Futures Commission to issue Bitcoin and Ethereum ETFs. The short-term decline, coupled with the positive news, provided momentum for a rebound in the overall market. Bitcoin has rebounded nearly 10% since its bottom yesterday, while Ethereum’s rebound is approaching 14%.

However, during this rebound, there seems to be a difference in behavior between Bitcoin and Ethereum whales according to on-chain data.

Ethereum Whales Enter the Market
Bitcoin Whales Remain Unmoved

According to data from Spot On Chain, after the news of the approval of ETFs in Hong Kong, eight whales who had previously sold Ethereum for profit re-purchased Ethereum. These on-chain transactions took place within 1.5 hours and cost a total of $31.88 million in USDT and USDC, purchasing a total of 9,787 ETH at an average price of approximately $3,257.

In addition, information shared by on-chain analyst Yu Yin also shows that whales who are accustomed to trading with a full position have re-purchased Ethereum. It is reported that this address previously sold 3,017 ETH for $10.24 million USDT at a price of $3,396 before the market fell on April 13. However, this afternoon, the address got back in the game, buying 3,149.8 ETH with the $10.24 million USDT.

In contrast, Bitcoin whales seem to have no significant movement so far.

According to the “Large Holders Net Inflow” indicator from blockchain analysis company IntoTheBlock, wallet addresses that own at least 0.1% of the circulating supply of BTC have added over 3,000 BTC ($198 million) today. This is a significant decrease compared to the net inflow of nearly 80,000 BTC ($5.3 billion) on the day after it dropped below $61,000 on March 20.

IntoTheBlock’s data suggests that on-chain whales are skilled at timing the market, often choosing the best time to accumulate or liquidate tokens. Therefore, tracking the net inflow indicator helps understand the thinking of these whales and evaluate the sustainability of trends. Additionally, IntoTheBlock states that the net inflow indicator is highly sensitive to wallets of ETFs traded on US-listed spot exchanges, and traders should closely monitor ETF flows on Monday.

(This article is authorized and reproduced from GT Radar)

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