The actions of a certain group of investors in the crypto market have shown where they are putting their funds amid the ongoing bullish rally, according to cryptocurrency analysis company, Santiment.
Santiment claims that stablecoins, Tether (USDT) and USD Coin (USDC) are being accumulated by “sharks,” or entities that own between 10,000 and 100,000 of a certain cryptocurrency.
According to the market intelligence firm, this demonstrates the skepticism that investors have over the viability of the most recent crypto market boom.
As cryptocurrency prices increased, Tether and USD Coin shark addresses gathered coins. This buildup, sometimes known as a “wall of worry” suggests doubt in the rally and hesitation to get in.
The U.S. Consumer Price Index (CPI) release for July was, nevertheless, welcome news for cryptocurrency investors. The global crypto market valuation is currently at $1.16 trillion, a 7.38% increase over the last day, with trading volume surging by over 32%.
Minutes after the U.S. Commerce Department released its July inflation report, which showed prices decreasing at a somewhat slower rate than most analysts anticipated, they drove up the price of bitcoin.
For the second time in three days, ether broke the $1.9 barrier, rising more than 12% from the day before. Even without the CPI news, the second-largest cryptocurrency by market cap has been gaining pace.
The long-awaited Ethereum blockchain Merge, which will switch the protocol from proof-of-work to a proof-of-stake paradigm that uses less energy, is almost here. The majority of the other popular cryptocurrencies were also basking in the sun, with XRP, Cardano, and Solana posting notable increases.
However, several analysts are still dubious about the long-term implications of recent price increases. Since the Fed is still raising interest rates and inflation is still high, analysts are not yet persuaded that the market will turn around.
Though a number of analysts can tell that this bear market is nearing its end because Fed Chairman, Jerome Powell has begun to claim that the rate increases have had a discernible impact.
