In the lead up to the Easter weekend, the crypto market has seen increased activity from whales and institutions, as well as heightened volatility driven by global trade tensions. Market analysts are now predicting a potentially quieter weekend after weeks of turbulence.
One notable transaction was made by a wallet linked to London-based investment firm Abraxas Capital, which acquired 2,949 Bitcoin worth over $250 million in the days leading up to April 19. In a recent purchase on April 18, the firm bought over $45 million worth of Bitcoin from Binance, according to data from Arkham Intelligence and Lookonchain.
This investment came shortly after Michael Saylor’s Strategy purchased $285 million worth of Bitcoin at an average price of $82,618 per BTC, showcasing the continued confidence of large corporate Bitcoin holders in the cryptocurrency amidst global uncertainties.
According to a report by Cointelegraph, large Bitcoin investors, known as whales, have been accumulating significant amounts of Bitcoin, absorbing over 300% of the cryptocurrency's yearly issuance. At the same time, exchanges are reportedly losing coins at a historic pace.
Despite the ongoing accumulation by whales and institutions, concerns have been raised about potential volatility in the crypto market due to significant movements from the medium-term Bitcoin holders, who typically hold coins for three to six months. Over 170,000 Bitcoin from this cohort entered circulation recently, leading to speculation about potential market volatility.
Some analysts have pointed out that large on-chain movements of coins might not necessarily impact weekend price action significantly, especially since these movements often occur outside of liquid or centralized exchange markets. Additionally, with US markets closed for the Easter long weekend, volatility could be subdued unless there are significant developments from the White House.
While concerns about volatility persist, recent market movements have also raised questions about liquidity issues within the industry. The collapse of the Mantra (OM) token's price by over 90% on April 13 and Bitcoin's dip below $75,000 on April 6 have highlighted the potential risks associated with trading on weekends when liquidity may be lower.
Overall, as whales and institutions continue to accumulate Bitcoin, the market is bracing for potential fluctuations over the Easter weekend. Analysts are closely monitoring the situation for any signs of increased volatility and market manipulation, emphasizing the need for caution and awareness during these uncertain times in the crypto space.
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