Bitcoin (BTC) whales – the most important holders of cash on the community – have been accumulating BTC since worth first hit the $20,000 degree in June this yr, one main analyst argues.
According to a tweet from Ki Young Ju, CEO of the crypto analytics platform CryptoQuant.com, the whale accumulation could be seen from a lately sturdy enhance in alternate buying and selling volumes, notably on Binance.
Looking at all exchanges as a complete, quantity elevated over 20x over the previous six months, with the overwhelming majority of the rise coming from Binance, the tweet stated.
“The volume renewed a year-high last month, but not much change in the daily closed price, indicating someone(s) is buying all the sell-side liquidity,” the CryptoQuant CEO wrote, earlier than jokingly asking:
“@CZ_Binance sir, this is bullish, right?”
At the identical time as quantity has elevated, the share of the general buying and selling quantity that takes place on Binance – by far the most important crypto alternate by quantity – “skyrocketed,” and is now at 84%, Ki Young Ju wrote. He added that Coinbase is the second-largest alternate by quantity, with a 9% market share.
And whereas it’s extensively believed that Binance’s present fee-free buying and selling promotion has contributed to rising quantity on that alternate, Ki Young Ju hinted that there may very well be extra to this than what meets the attention:
“I agree that their zero-fee policy might have attracted more investors, but why do you think they are running wash trading bots? They were already the top exchange with half of the volume since 2020,” he identified.
When Binance first launched zero-fee buying and selling on some BTC pairs in July this yr, buying and selling volumes instantly surged. The trigger behind it was doubtless merchants that engaged in wash buying and selling to extend their shopper standing on the alternate, the place excessive buying and selling volumes was rewarded with numerous advantages.
To counter the issue of wash buying and selling, Binance CEO Changpeng Zhao (“CZ”) stated the zero-fee BTC pairs can be excluded from calculations for VIP standing on the alternate.
In August this yr, Binance additionally eliminated buying and selling charges on a few of its hottest ethereum (ETH) pairs, serving to the alternate buck the development on buying and selling volumes regardless of falling crypto costs.
Compiled by Coinbold