These altcoins are going to pump because of Bitcoin whales
- A post on the Santiment Community platform titled “The Pump Hunter’s Guide: How to spot and profit from artificially inflated crypto prices” explains how Bitcoin, Ethereum, and Litecoin whales could impact upcoming price levels.
- Other experts have refused to link Bitcoin’s current rally to the deliberate activities of whales.
Most cryptocurrencies broke through multiple resistance levels to record some interesting feats this month with Bitcoin climbing above $21k for the first time since November last year. Shortly, the asset fell marginally as sentiments hit neutral. According to the latest market data, Bitcoin’s current sentiment has reached “bullish” with the price trading a little above $23k. This is a 9.5 percent increase in the last seven days.
Ethereum is also enjoying a bullish sentiment with a trading price of $1,635 and a weekly surge of 4.7 percent. Almost all the top altcoins are in green including Solana which almost crashed after the collapse of the FTX empire. The asset is currently trading at $24, and investors have made a weekly gain of 5.6 percent. Regardless, the question of whether this is a breakout or a fakeout remains within the minds of investors.
A post on the Sentiment Community platform Ethereum “The Pump Hunter’s Guide: How to spot and profit from artificially inflated crypto prices” explains how Bitcoin, Ethereum, and Litecoin whales could impact upcoming price levels. According to the post, the crypto community is largely aware of the recent market trend of artificially inflating prices called “pump”. Santiment is a market intelligence platform.
📊 According to our latest community post, there is unpredictability surrounding #altcoin pumps that have happened in the markets throughout January. Read their opinion, and how #Bitcoin, #Ethereum, and #Litecoin whales will impact upcoming price levels. https://t.co/cztaupDkn1 pic.twitter.com/OMXlY8xTI6
— Santiment (@santimentfeed) January 23, 2023
Bitcoin investment could go bad
The fact that the market could experience a downturn a few days after a pump does not make its investment recommendable.
Such operations usually go unnoticed unless the whales or large holders who are usually behind this begin to sell their positions. The post further states that this has been the situation for Bitcoin, Ethereum, and Litecoin which ends up pushing altcoins like Solana, Cardano, Dogecoin, etc up the price curve. While many investors are jumping onto a moving train to take advantage of the mini rally in the market, the post advises that this could be dangerous.
It is advised to be cautious and wait for better opportunities in the market rather than jumping into a potentially unstable investment. Stay safe.
Other experts have refused to link Bitcoin’s current rally to the deliberate activities of whales. According to them, the price is reacting to the Bureau of Labor Statistics (BLS) CPI report which discloses that the overall inflation of urban consumers is declining by 0.1 percent. This is said to be the largest drop since April 2020. It is expected that this data could trigger a less harsh Federal Reserve interest rate hike at the Federal Open Market Committee meeting expected to occur on February 1.
Governor Christopher Waller gave a hint:
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Based on the data in hand at this moment, there appears to be a little turbulence ahead, so I currently favor a 25-basis point increase at the FOMC’s next meeting at the end of this month.
The cooling US dollar Index (DXY) has also been said to be a huge boost for Bitcoin. Analysts have observed that sentiments for Bitcoin increase whenever DXY retracts. Also, Bitcoin and major stock indices share a correlation coefficient. In this case, Bitcoin could surge with the bullish equities markets if the interest rate is favorable.
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