trend of Bitcoin According to a popular analyst, (CRYPTO:BTC) whales seem to have stopped accumulating cryptocurrencies.
what happened: on tuesday, Ali Martineztook to social media platform X (formerly Twitter) to alert the community about the whale's cessation of Bitcoin accumulation. Martinez's post was accompanied by a graph of the Accumulation Propensity Score, a measure of the on-chain accumulation behavior of large entities.
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Since the accumulation propensity score has now fallen to zero, Martinez believes this indicates that whales are either distributing Bitcoin at current levels or not accumulating.
“#Bitcoin’s accumulation propensity score has dropped to zero, indicating that whales are either distributing or not accumulating $BTC at current levels,” Ali wrote.
The cumulative trend score is a measure of how much Bitcoin different entities are acquiring or selling on-chain. It combines two factors: an entity's Bitcoin holdings (participation score) and whether it acquired or sold more coins in the last month (balance change score).
A score close to 1 indicates that a large entity or significant part of the network is accumulating Bitcoin, while a score close to 0 indicates they are selling or not acquiring any more. According to Glassnode Academy, this helps understand the size and behavior of market participants in terms of Bitcoin accumulation over the past month.
Whales are typically large holders of Bitcoin, and their accumulation and distribution actions can have a significant impact on the market. Changes in their behavior could signal a change in market direction.
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why is it important: The news that Bitcoin whales have stopped accumulating comes at a time when the future value of the cryptocurrency has been the subject of much debate. Despite the recent pullback, analysts at Standard Chartered predict that Bitcoin's value will rise by more than 100% by the end of 2024. This prediction, when combined with whale behavior, could signal major changes in market dynamics.
Additionally, BRICS countries are considering the use of stablecoins and CBDCs to reduce dependence on the US dollar, which could impact the global crypto market. Meanwhile, meme coins are gaining momentum, with one trader predicting at least three meme coins will surpass $100 billion in market cap.
However, some traders have expressed concerns about the current state of the market, with one trader warning that the market is overvalued and the current cycle may not be as favorable as before.
These trends, combined with changes in whale behavior, suggest that the crypto market may be on the verge of major change.
price action: According to data from Benzinga Pro, Bitcoin price is currently $66,843, registering an increase of 0.64% in the past 24 hours. Impressively, it has surged 51.33% since the beginning of the year.
Read next: Trader predicts 'at least 3 meme coins with market cap over $100 billion': Here are the coins Benzinga followers liked the most
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