This month of March has been a journey of ups and downs in every way, with the worst week for the crypto market of the year. We can see it in the case of the classics, such as Bitcoin or Ethereum. But we also saw a preference for stablecoins, which allows us to draw some lessons. Then, a huge accumulation of Bitcoin started.
However, we go to the weekly summary of crypto whale activity and then to the analysis.
Analysis of the worst week for crypto market
March 15: Bitcoin continues to decline and stablecoins are the refuge
During March 15, the crypto whales mobilized 13,160 BTC, through seven transactions. Of these, four were made to unknown wallets and the rest ended up on exchanges. The accumulation of this cryptocurrency was slightly predominant, but by then Bitcoin’s performance was still in the red.
On the other hand, we could say that stablecoins were the preferred ones in the cryptocurrency market. Two of the most prominent transactions on this day were one for $ 17 million and the other for $ 5.5 million, both to unknown wallets.
This is typically noticeable in environments where Bitcoin drops its price enormously, or the financial market is unstable, and both of these things happened right now. Being the beginning of the worst week for the crypto market.
Additionally, we witnessed Huobi coining HUSD in large numbers. The total for this day was 4,138,811 HUSD, which is the same in dollars.
Finally, for this day the crypto whales also decided to accumulate USDC tokens. Nothing more and nothing less than 81,000,000 USDC ended up in unknown wallets. The cryptocurrency market was dominated by the purchase of stablecoins.
March 16: Crypto Whales acquire more stablecoins
Huobi’s minting of HUSD continued on March 16, according to Whale Alert reports, giving a total of 16,000,000 new tokens. The burning of this same cryptocurrency was also observed, but in a much smaller proportion.
Now, if we talk about BUSD the story was different, because this day the trend was for sale on exchanges. Through three different operations, crypto whales brought more than 15 million of this cryptocurrency to Binance.
Furthermore, at least 18 Bitcoin transactions were recorded on this day. 50% of these operations were made from unknown wallets to exchanges, and the rest in the opposite direction. Therefore, at this time the market at least for crypto whales had a polarized trend.
That is, some took advantage to accumulate taking advantage of the lower price and others tried to change their assets for other more stable cryptocurrencies. The total exchanged on exchanges was 9,403 BTC. Meanwhile, the accumulated total was approximately 17,663 BTC.
Nevertheless, the currency most used in the exchanges of this day was USDT. A surprising sum of 304,162,341 USDT ended up on various exchanges through 17 transactions.
Similarly, a total of 104,974,387 USDT ended up in unknown wallets after at least ten transactions from the Tether treasury, thus demonstrating the high demand for stablecoins.
March 17: USDT as crypto whale’s strongest haven
On March 17, according to Whale Alert, Huobi minted 7,000,000 HUSD. Likewise, the USDC treasury remained active minting a total of 5,840,815 USDC throughout the day. With this we demonstrate that the demand for stablecoins was what prevailed for much of this week that has been critical for the financial markets.
Furthermore, it is a reflection of the worst week for the crypto market, with its leading currencies losing investors.
Other stablecoins also in demand in the cryptocurrency market were BUSD and PAX. An equivalent of $ 18,772,966 was minted from the former, and $ 16,428,751 from the latter.
However, the jackpot went to USDT. At least fifteen transactions were made using this cryptocurrency. For example, USD 110,000,000 was minted, according to Whale Alert.
Additionally, 45,927,887 USDT were taken to exchanges such as Binance or Huobi. Meanwhile, the accumulation of crypto whales was higher, with a total of $ 328,948,062 targeting unknown wallets. The most notable transaction was one for $ 227,863,569 ($ 227,220,625) transferred from OKEx.
Now, doing a study of the situation of Bitcoin for this day, we will see that the biggest and undisputed trend was that of change in exchanges and sale. Through fourteen movements, the crypto whales brought 27,497 BTC to exchanges like Binance, Bitfinex, and OKEx.
March 18: Bitcoin sale, on a smaller scale
As we get closer to the end of the week, this day we continue to see the minting of HUSD tokens. Specifically, Huobi minted a total of 5,000,000 HUSD on March 18, according to Whale Alert. In this same order of ideas, a total of 5,466,289 BUSD minted by the PAX Treasury were reported.
Like previous days, USDT and BTC were the most used, but stablecoin being the preferred one between the two. In total, USD 152,205,927 was accumulated, the final destination of which was unknown wallets. At the same time, 24,499,324 USDT were brought to exchanges through four operations.
About Bitcoin, it can be said that of eight transfers, five were made from unknown wallets to exchanges. These totaled a total sold of 14,227 BTC. Meanwhile, the remaining three totaled a total of 2,982 BTC that ended up in unknown wallets.
March 19: Bitcoin accumulation by crypto whales returns
To this day, the accumulation of stablecoins by crypto whales continued, but to a lesser extent than in previous days. At least ten large sums of money were carried out this day and went to unknown wallets. At the end of Friday, a total of $ 147,534,461 accumulated by crypto whales was accounted for.
As for Bitcoin, the trend changed radically towards an accumulation, as at least 103,384 BTC ended up in unknown wallets through 21 transactions. With 14 of them for an amount of 1000 BTC. Likewise, Whale Alert reported five operations from unknown wallets to exchanges, totaling 6,791 BTC. This likely influenced Bitcoin’s slight bullish momentum this day.
While the worst week trend for the crypto market is changing, it was to close.
March 20: Bitcoin charging
For last Thursday, the PAX treasury minted almost 7.3 million BUSD. This stablecoin was in high demand during the week. Furthermore, almost $ 10 million was introduced to Binance using this cryptocurrency and almost 14 million was accumulated in unknown wallets on this day alone.
Likewise, crypto whales deepened their Bitcoin accumulation with 23 transactions from exchanges to unknown wallets adding 27,578 BTC to each other. Also, 11,391 BTC were exchanged.
On the other hand, we witnessed the burning of USD 6,544,511 and the accumulation of USD 31,500,000 throughout the day. By then, the predominant currency was Bitcoin again.
March 21: Interesting end of the week
Finally, to end the week we continue to see the accumulation of Bitcoin, with a total of 15,016 BTC directed at unknown wallets through six transactions. Contrary to the previous days, it is now USDT that is sold or exchanged on exchanges.
Specifically, $ 40 million USDT ended up in unknown wallets, but 45,299,996 ended up in Binance and Bitfinex via four moves by crypto whales.
In this way we ended the worst week for the crypto market, with ups and downs for Bitcoin. However, stablecoins certainly shone.
Analysis of the worst week of the crypto market
At the time of writing this report, Bitcoin sits at around $ 5,912.01, representing a 5.06% drop in the last 24 hours. However, if we look at the monthly chart, we will see that there was a slight bullish momentum in the days following the deep drop that occurred on March 12.
The reason for Bitcoin’s brief bullish trend is estimated to be driven by profit expectations, stemming from increased volatility in the cryptocurrency market.
And in a way it was, crypto whales expected a relapse of Bitcoin in the short term, so they protected their money in stablecoins. As soon as Bitcoin started to go down again, they sold the altcoins and accumulated Bitcoin.
For example, trading volumes on cryptocurrency exchanges increased on March 19. Combining Coinbase, Bitstamp, and Bitfinex together we noticed a 19% increase in 24-hour exchange volume, according to data aggregator CryptoCompare.
Now if we talk about stablecoins we will see that they seem to be unflappable during the COVID-19 outbreak. Its values are generally tied to fiat currencies, such as the US dollar or Chinese yuan, and more recently to publicly traded commodities such as gold.
Thus, they provide easy access for traders and investors in cryptocurrency markets and increase liquidity that would otherwise take days to process through traditional payment channels. Therefore, it is not surprising that we saw how for much of the week these predominated in the activities of crypto whales.
What to expect in the future?
For many investors within the cryptocurrency market, the more volatility there are more opportunities to make money. Also, they decide to invest when everyone else is panicking, which is what the Fear and Greed Index indicates.
Because of everything that happened this week, many have questioned Bitcoin’s promise to be a “safe haven” from world crises. However, crypto whales have shown a tendency to accumulate these days.
This accumulation of Bitcoin may be due to the hope that this cryptocurrency will rise again due to other factors, such as Halving and the amount of fiat money that is being injected into the market by governments around the world.
We will have to wait and keep abreast of the opinion of experts, as it is an uncertain terrain for almost any asset in the market.