Although bitcoin has regained its $20,000 range and is trading slightly above the $21,000 level, the lead cryptocurrency is still down 75% from its all-time high.
Conversely, some positive things are observed around altcoin trading. Altcoin price volatility around the crypto space shows a bullish outlook for the crypto space.
At the moment, bitcoin is trading at $21,522, down 0.09% over the past 24 hours.
According to CryptoQuant, a crypto trading data provider, activity in terms of altcoins has increased across most crypto exchanges. When on-chain data is considered, the environment around bitcoin is not as attractive. This also suggests that whale accumulation has increased instead.
The major currency has now entered a recovery phase and is struggling to hold onto the range, after bitcoin experienced a bearish run for over a month. However, this is not the reason for the increase in altcoin accumulation by whales.
Possible reasons for increased altcoin activity
The first possible reason could be due to over-the-counter trade with other whales through custody services. The next reason to be seen by Cryptoquant is for whales to open long or short positions where altcoins are being used as security.
Meanwhile, upcoming altcoin projects and crypto hedge fund liquidations in crypto exchanges may also serve for an increased altcoin activity. However, these factors may not be the exact reason for the increase in altcoin purchases as whales are unlikely to deposit their assets on exchanges at these prices.
Conversely, whenever there is an increase in altcoin accumulation, there is a high probability of a downside. As the price of bitcoin is struggling to see a bull run and the cryptocurrency is yet to calm down, expect the price of bitcoin to fall in the coming days. Nevertheless, the slight jump in the price of bitcoin brought relief to altcoin investors.