BTC Whales Accumulating as Prices Fall
The Bitcoin price is in red at the time of writing. So volatile, the BTC/USD has been dumping and pumping within a $4k zone tethered at $30k.
While price action of the last few weeks has been nothing but deflating, on-chain metrics now reveal possible accumulation.
An on-chain analyst observes that though the BTC/USD price is fragile and printing lower lows, whales appear to be accumulating.
Among the “financial stability challenges” the U.S. central bank is monitoring is tether, according to the U.S. Federal Reserve Bank of Boston’s president.
Price down, #bitcoin accumulation addresses up for the last 10 days.
Sorry for the bullish chart, I'll show myself out. pic.twitter.com/VQUhLPDI9U
— Lex Moskovski (@mskvsk) June 26, 2021
There is a divergence between the number of accumulating addresses and BTC price.
Besides, charts show that momentum indicators are, in some time frames, bottoming up as prices fall.
We can find the clear divergence on the daily chart. Bear trap is going now. pic.twitter.com/eVKqq7wuTw
— Man-ichi Okoshi 大越万二郎 (@TF15749243) June 26, 2021
Since trading volumes influence momentum, which defines price trajectory, this bullish printout could be a relief for optimistic buyers.
Accompanying this shift is changing sentiment, especially on Twitter:
— btcsentiment (@btcsentimentCOM) June 26, 2021
Still, how prices react at $30k could also shape Bitcoin in the short to medium term.
U.S. Official says USDT a Challenge to Financial Stability
Eric Rosengren, the president of the Federal Reserve Bank of Boston, thinks USDT is a threat to global financial stability.
In a slide presentation on June 25, Eric said U.S. officials are watching the stablecoin, describing stablecoins as “prime money markets” that are riskier.
His concerns are more on stablecoins’ growth and increasing share in the global market economy despite their lack of regulation.
A software developer with CashApp now says if USDT is shut down, BTC will benefit.
If Tether gets shut down and $60 billion of USDTs become unredeemable, I’d imagine most of those holders will immediately try to liquidate for BTC, which would put immense upward pressure on the price
— Danny Diekroeger (@dannydiekroeger) June 26, 2021
Most stablecoin holders will try liquidating for BTC, as was the case when the USDT peg temporarily fell below $0.90 in 2018.
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