Crypto whales are nowhere to be found – The Average Joe
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    Crypto whales are nowhere to be found

    victorlei

    January 25, 2022

    crypto

    If you thought the stock market is looking bad, just wait until you see crypto prices. Or better yet, don’t — and sleep better.

    What’s the big deal? Both the stock and crypto markets are falling nearly in sync — impacted by the fear of rising interest rates.

    From their November peaks, Ethereum is down by 54% and Bitcoin by 47%  — with smaller crypto assets generally down by even more.

    The crypto market is now oversold based on several technical indicators:

    • The relative strength index (RSI) on the crypto index fell below 30 — a lifetime low according to CoinDesk.
    • Between 0-100: Under 30 is oversold and above 70 is overbought.

    At these levels, crypto is seeing low demand from big investors (per CoinDesk) and if they’re not buying — investors can say goodbye to a big rebound.

    • At the start of 2021, 2,500 accounts held 40% of all Bitcoin.
    • This makes the market more susceptible to large price swings from the buying/selling by these whales.

    Is this a 2017 repeat? When crypto prices fell 90% over 15 months? It’s difficult to predict but there are many signs that it’s different this time:

    • 2017: Crypto prices were driven primarily by speculation — with most tokens having little fundamentals or real projects backing them.
    • 2022: Crypto projects are still driven by speculation but several projects are generating revenue with real use cases — with slow adoption by institutions.

    But crypto is still highly unpredictable — and prices could fall even further before they recover. Until market sentiment changes and investors are willing to take risks again — both the stock and crypto market are unlikely to see a major recovery.

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