Bitcoin and Ethereum, two of the most desired crypto-currencies, are nailing it on the stock charts these days. Bitcoin trading at $117,300 just a little shy of the week’s all time high point. While Ethereum climbs up to $3,700 with a 4% daily gain and 26% surge over the past week.
The CoinDesk 20 Index holding its stand strong at 4,071, does dignify the “bullish sentiment”. Taking a closer look at the fresh data from CryptoQuant, it is evident that exchange inflows spiked dramatically at 81,000 BTC and 2 million ETH in a single day, driven by whales and miners likely cashing in on recent highs.
Such enormous inflows are normally preceded by price pullbacks that signal the obvious turbulence in the market ahead. This mounting dominance of Ethereum is a sign of capital rotation into higher-beta assets, while hinting that investors are hedging their bets. Another crypto-currency, altcoin plays muted in this inflow stream, which could either be because of conviction or hesitation.
On the face of it, the market’s surface is all green, but the undercurrent is quite unpredictable here. Heavyweights exiting positions into strength implies a strategic cooling-off may follow. As of now, Ethereum’s momentum might fuel a short squeeze, yet the buildup in bearish bets makes this a high-stakes moment. Although Bitcoin and Ethereum are the stars of the lineup, yet, if altcoin, holds still and is patient, it might facilitate the sidelined capital to roar back in.
The entire trend feels like a test of conviction against caution. Either we are at the verge of a bigger breakout or a near-terms pause, either ways; smart money is here to help both sides earn big bucks.