Altcoins
Altcoin Whales Prepare For Rally After September Fed Rate Cut
Following the US Fed meeting on Wednesday, Bitcoin and the broader cryptocurrency market came under heavy selling pressure in what appeared to be a sell-off event. Fed Chair Jerome Powell kept interest rates unchanged at 5.25% while hinting at the possibility of a rate cut in September. Apart from Bitcoin, the altcoin market faced heavy sell-offs on Wednesday, with major players like Solana and XRP correcting by 7-8%.
Altcoin whales go on a buying spree
Although altcoins have underperformed recently, whales have been buying the dips by accumulating the most ahead of the Fed Rate Cuts
coming in September. This Fed pivot will introduce strong liquidity into the market, which will lead to a strong rally in altcoins.
CryptoQuant CEO Ki Young Ju said that whales are positioning themselves for the next altcoin rally. He noted that the volume of limit buy orders for altcoins, excluding Bitcoin and Ethereum, is increasing. This trend suggests that strong buy walls are being established, signaling increased interest and potential for ALT prices to rise.
Courtesy of Cryptoquant
Spence Hakimian, founder of Tolou Capital, wrote: “Rate cuts and higher budget deficits are very bullish cryptocurrencies. And since altcoins have a higher beta than Bitcoin, they should perform better in a risk-on environment. It makes sense to see whales positioning themselves in the same way.”
On the other hand, the Ethereum Whales have been on an accumulation spree despite the outflows from the Ether ETF. In the last 48 hours, whales have accumulated nearly $450 million worth of ETH on the open market.
Ethereum whales have accumulated over 126,000 $ETH in the last 48 hours, worth around $440 million! pic.twitter.com/hwHU0fAcdc
— Ali (@ali_charts) July 31, 2024
Read also : Will ETH ETF Inflows Renewal Trigger Ethereum Price Rally in August?
August could be the month of accumulation
With the Federal Reserve eyeing a 25bps rate cut in September, cryptocurrency markets are likely to see some sideways consolidation over the next four weeks. This could also be a period of strong accumulation for long-term players looking to participate in the next cryptocurrency market rally.
Popular crypto analyst Benjamin Cwen said alts will continue to bleed against Bitcoin until a liquidity pump hits the market. This situation is quite similar to what happened in 2019.
The unstable price action of #BTC Since March, with a bearish bias, ALT/BTC pairs are bleeding.
This is playing out very similarly to 2019. Back then, BTC was also in a downtrend for a while after gold broke out (which also happened in March of this year).
Discussion thread 👇 pic.twitter.com/CB0JTZyXu7
— Benjamin Cowen (@intocryptoverse) August 1, 2024
Read also : BlackRock vs VanEck: Solana ETF Takes Center Stage in Epic Battle