Bitcoin price failed to go past the resistance level of $40,000 during the weekend. With BTC trading lower than 40% from its all-time high, whales focused on stablecoins.
Data obtained from Santiment shows whales holding 10,000-10 million USDT. They have gained more than $10 million purchasing power during the last month. The data shows the purchasing power of such whales increasing by more than 7% in one month.
The purchasing power of any crypto entity is defined as its stablecoin capacity to buy BTC and increase its price. When BTC is trading at a lower price, the stablecoins can buy a large part of circulating bitcoin supply. It leads to a rise in the cryptocurrency price so the buying power remains high.
With whales accumulating more stablecoins, it indicates their wait for buying bitcoin when it is trading at a low price. It shows a bullish future for crypto market. The BTC outflow from exchanges supports this theory. In 21 weeks of the last 26 weeks, a lot of BTC has moved out of exchanges. The incoming flow has been lower.
S&P 500 and bitcoin have shown correlation. This is the reason behind current slow price momentum when gold was rising to its multi-week high. The price momentum matches the one seen during the initial six months of 2021. At that time, the gold outperformed BTC during the initial two quarters while bitcoin matched equity market performance. The correlation between BTC and stock market was broken in the middle of third quarter. After that, BTC rose while gold came down.