The cryptocurrency market often experiences ups and downs, following a cycle of highs and lows. Savvy investors take advantage of the low points to acquire digital assets in anticipation of a future upward trend. The current quarter is no different, as the market has been facing a bearish trend recently.
Crypto market in the last few weeks
Over the past few weeks, the crypto market has seen significant losses, mainly due to the collapse of FTX, a prominent cryptocurrency exchange. Additionally, the macroeconomic conditions worsened after the Federal Reserve raised interest rates, further contributing to the market’s decline.
Ether, which is the second-largest cryptocurrency, has been particularly affected by these setbacks. Its value dropped below $1,600 and reached as low as $1,081, representing a loss of almost 24% over this weekend.
Despite these challenges, large holders of Ether known as “ether whales,” recognized the bearish trend and seized the opportunity to accumulate more than $ 1 billion worth of Ether while its price was under the level of support.
It is important to consider the inherent volatility of the market. For cryptocurrency trading or investment, you must check out Qumas AI.
Ether and its ecosystem’s benefits
Ether’s ecosystem growth and layer 2 protocols contribute to its promising advantage. Upcoming upgrades further solidify the positive outlook for the Ether blockchain.
It has exceeded expectations this year, surpassing the projected price of $1,500. Ether remains the second-largest blockchain by valuation and the largest for smart contract hosting. The current price stagnation is temporary and can be reversed at any time.
Whales bought a significant amount of Ether
Based on Santiment’s data, Ether whales accumulated around 947,940 Ether, priced at more than $1 billion at the present market price. This whale accumulation is the most significant single-day event of its kind in the past year.
Previous accumulations have resulted in an average 3.2% price increase for Ether against BTC. However, this time, the opposite occurred due to the lingering impact of the FTX collapse on Ether. The collapse led to ETH shortages and insolvency for the crypto exchange.
Reactions that came from a few
Attempts by the former CEO of FTX’S alameda research to save the situation by transferring ETH to the exchange were unsuccessful, and both firms eventually filed for bankruptcy. Adding to the turmoil, the FTX hacker attacked the exchange’s accounts, stole assets, and converted them to Ether.
This raised speculation that the hacker’s wallet address may have belonged to an insider. Subsequently, the stolen ETH was dumped for Bitcoin, further contributing to selling pressure on Ether.
The two largest cryptos face new lows
The unfortunate events led to a significant decline in the price of Ether during the crisis, dropping to support levels prior to the whale accumulation.
Currently, Ether is trading at $1,165, showing some gains. Despite the substantial loss, Ether has exhibited recovery signs, with its price increasing by 2% in the past few hours. In contrast, Bitcoin is facing challenges. Last Tuesday, it reached a four-month low of $17,656 after experiencing a 10% plunge.
It saw a huge fall
Bitcoin experienced a significant decline, causing a ripple effect on other cryptocurrencies. It reached a week low on Monday, trading at$15,725.02 and later dropping to $15,586.94. It is the lowest since 10th November. However, there was a slight recovery, and Bitcoin is currently trading at$16,515 with some minor gains.
Current market scenario
The crypto market is witnessing interesting trends. It is because investors are responding to the current conditions of the market. Notably, Shiba Inu has experienced a sell-off by large investors. On the other hand, Ether and RENQ are attracting more investments.
A lot of investors are drawn to Ether because of the coming Shanghai upgrade. It is expected to happen in mid of April. RENQ is also gaining attention for its successful presale stages, raising more than $5 million and generating a remarkable 75% + price gains on some investments this year. These trends have implications for the future of the crypto market.
Few final words
The crypto market is dynamic. Investors here seek promising opportunities. SHIB experienced a whale sell-off. It was because of limited use cases and market volatility. But Ether and RENQ gained investments because of established uses cases and distinct features. Before you invest in crypto, you must do a thorough research.
At Solutiontales we make it easy to understand the throes of cryptocurrencies, but our words should not be taken as a financial advice. Remember, a wise investor can make money in a bull or bear market when given the right data.