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Bitcoin (
$85,831.00 ) (BTC) price struggled to overcome $40,000 resistance over the weekend and currently trading just above $38,000. At a time when BTC is hovering at a 40% discount from all-time highs, whales have started accumulating more stablecoins.
According to data from Sentiment, stablecoin whales with wallet holdings of 10,000 to 10 million Tether (USDT) have accumulated over $1 billion in buying power in the past month. The data indicates the buying power of these whales increased by over 7% in just one month.
Tether USDT Supply Distribution Source: Santiment
Buying power is defined as the capacity of stablecoins to buy Bitcoin ( $85,831.00 ) and thereby driving its price higher. When the price of Bitcoin ( $85,831.00 ) is low, the stablecoin supply is able to purchase a bigger share of the circulating BTC supply, causing the price to rise, thus buying power is high and vice versa.
Related: Rate hikes, CPI and war in Europe — 5 things to watch in Bitcoin ( $85,831.00 ) this week
The significant accumulation of stablecoins by whales indicates they are waiting to buy BTC at a lower price, showing a bullish outlook for the market. The outflow of BTC from exchanges also supports this sentiment. Out of the past 26 weeks, 21 weeks have seen a higher flow of BTC supply away from exchanges than on to it.
Bitcoin ( $85,831.00 ) Exchange Flow Balance Source: Santiment
The close correlation of Bitcoin ( $85,831.00 ) with the S&P 500 has also been seen as one of the reasons behind its current sluggish price momentum, while gold rose to a multi-week high. However, the price momentum is quite similar to the first half of 2021, where gold outshined BTC for the first two quarters while BTC maintained a close correlation with the equity market.
BTC vs XSP vs Gold Price Source: Santiment
By the mid of the third quarter, BTC broke its correlation with the stock market and rose to new highs, while gold plummeted to new lows.
