Data shows the sharks and whales of the largest stablecoins have been accumulating, something that may turn out to be bullish for Bitcoin. Sharks & Whales Have Been Loading Up On Stablecoins Recently According to data from the on-chain analytics firm Santiment, the sharks and whales have recently improved their share of the total supply of stablecoins like USD Coin (USDC), Dai (DAI), and Binance USD (BUSD). The relevant indicator here is the “Supply Distribution,” which tells us what percentage of a cryptocurrency’s total circulating supply is being held by which wallet group in the market. Addresses are divided into these “wallet groups” based on the total number of tokens that they are holding at the moment. In the context of the current discussion, the 100,000 to 10 million coins cohort is of interest. This group naturally includes the wallets of all the investors who are carrying a balance of at least 100,000 and at most 10 million tokens. As the assets in question here are USD-pegged stablecoins (meaning that their value is fixed at $1), the bounds of this range convert to $100,000 and $10 million, respectively. As these amounts are massive, only the largest of the investors in the market would be sitting on these addresses. The sharks and whales are two such cohorts that are large enough to cover these wallets. These groups can be quite influential in the market, as they have the power to move a notable amount of coins at once. Obviously, the whales would be the more important group of the two, as they are the larger cohort. Related Reading: Santiment Explains How Bitcoin Investor Mentality Influenced Recent Price Action Now, here is a chart that shows the trend in the Supply Distribution of these sharks and whales for three of the most popular stablecoins in the sector: All three of these supplies seem to have gone up in recent weeks | Source: Santiment on Twitter As displayed in the above graph, the supplies of these three stablecoins hit a low back in March, but have since then observed an increase. This means that sharks and whales of the respective tokens have been accumulating during this period. Generally, investors use stables whenever they want to avoid the volatility associated with other assets like Bitcoin. So, sharks and whales picking up these coins can be a sign that they have been exiting the other assets recently. Eventually, however, such investors who have taken safe haven in stablecoins may exchange these tokens back for the volatile coins, once they feel that prices are right to jump in. Whenever these holders swap their stables, the prices of the assets that they are shifting into can naturally observe a buying pressure. This implies that the currently piled-up stablecoin supplies of the sharks and whales can be looked at as the potential dry powder that may be deployed into assets like Bitcoin. Related Reading: Litecoin’s MVRV Has Surged, Why This Is Bearish In the last couple of weeks, the USDC, DAI, and BUSD supplies of these humongous holders have flatlined, meaning that they may have slowed down their exit from the volatile coins. If the trend now reverses and they start scooping up the other cryptocurrencies with their stables, BTC could possibly feel a bullish effect. BTC Price At the time of writing, Bitcoin is trading around $26,700, down 1% in the last week. BTC has erased the gains from yesterday | Source: BTCUSD on TradingView Featured image from NOAA on Unsplash.com, charts from TradingView.com, Santiment.net
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