After a record-breaking all-time high (ATH) of $61,699 on March 13, bitcoin plunged to $53,300 on March 23, a drop of more than 14% in only ten days.
However, observing this massive drop, onchain analyst Willy Woo assumes that another institutional investor could be buying the dip.
On March 23 he tweeted that a large volume of coins that are being liquidated from exchanges, are in fact flowing to ” strong hands with minimal history of selling.” However, it is the investment of Coinbase, which has encouraged large BTC acquisitions by U.S. entities in the past, that has convinced Woo that a yet-to-be-announced company is currently buying.
Altcoin Market Sentiments
Expanding on this topic, the availability of altcoins on exchanges is diminishing, just as it is for Bitcoin. The amount of top altcoins and DeFi tokens like SUSHI, AAVE, LINK, YFI, and DAI on exchanges has decreased. For most, if not all, of these tokens, a scarcity narrative is forming.
Does this imply that they’re also shifting hands? To be sure, there isn’t much evidence to track outflows from exchanges for the thesauruses. The exchanges have seen a sudden boost in trade volume against exchange inflows and the price plunge, and this could be signifying the theory of dropping supply and changing hands.
Most altcoin charts are choppy and the rise in trade volume could signal a shift in trader attitude when it comes to DeFi tokens. AAVE’s price declined by over 7% in 24 hours and the trade volume shot up by over 64% in the same hours.
SUSHI, which was trading on exchanges with gains of 38 percent in trade volume in the 24 hours before press time, was nearly 27 percent away from its ATH of $23.38.
UNI topped the list, with a 91 percent rise in trade volume over the same time frame amid an 8.77 percent decrease in price. Inflows to exchanges have decreased as the DeFi token is 11 percent away from its ATH.
Bitcoin price today at the time of writing is $52,693.84 with a 2.6% price dip in the last 24 hours.