The price of Bitcoin ( BTC) struggled to surpass $40,000 resistance this weekend. It is currently trading at just over $38,000. Whales are now accumulating more stablecoins at a time when BTC has fallen 40% from its all-time highs.
Santiment data shows that stablecoin whales holding wallets of between 10,000 and 10 million Tether ( USDT) have amassed more than $1 billion in purchasing power over the past month. These whales’ buying power increased by more than 7% in a single month, according to the data.
Tether USDT Supply Source: Santiment
The ability of stablecoins in buying Bitcoin, thereby increasing its price, is called buying power. The stablecoin supply can purchase more of the circulating BTC supply when the Bitcoin price is low. This causes the price to rise and the buying power to be high.
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Whales have accumulated significant amounts of stablecoins, which indicates a bullish outlook on the market. This sentiment is also supported by the outflow of BTC supply from exchanges. In the last 26 weeks, 21 weeks saw a greater flow of BTC supply from exchanges than it has on to it.
Bitcoin Exchange Flow Balance Source: Santiment
It has been suggested that Bitcoin’s close relationship with the S&P 500 is one reason for its current slow price momentum. Meanwhile, gold rose to a multiweek high. The price momentum is very similar to the first half 2021. In that period, gold outperformed BTC in the first two quarters, while BTC maintained close correlation with the equity markets.
BTC vs XSP vs Gold Price Source: Santiment
BTC had broken its correlation with the stock exchange by the middle of the third quarter and reached new highs. Gold fell to new lows.
