"Institutional and Whale Altcoin Trading Volume Surges... Will the Bull Market Continue?"

Price Stability After Trump's Inauguration

Massive Influx of U.S. Buying Pressure

Long-term Market Uptrend Expectations

Since the inauguration of Donald Trump as President of the United States, the cryptocurrency market, which had shown significant volatility, is gradually stabilizing and seeking further upward momentum. Recently, there has been a massive influx of U.S. buying pressure into the market, and observations suggest an increase in trading volume by institutional investors and whale investors.

According to the cryptocurrency industry on the 4th, the cryptocurrency analysis platform Glassnode stated in a recent research report, "The cryptocurrency market has recently slowed its overall upward pace after a bull market, and there is a possibility that buying pressure may weaken in the short term," but also analyzed, "The upward trend is still continuing. There is room for further long-term gains." The report predicted that market participants might have a strong tendency to hold onto their existing coins.

There are also observations that so-called whale investors, who are major players in the cryptocurrency market, are accumulating major altcoins (cryptocurrencies other than Bitcoin) including Ethereum. Cryptocurrency data analysis firm Santiment reported on the 24th of last month, "Altcoin trading volume showed a significant increase around Trump's inauguration," and "In particular, large-scale Ethereum transactions have surged by 65% recently. Institutional investor demand remains robust, and their strategic buying movements are being detected." According to the domestic cryptocurrency exchange Upbit, Ethereum is trading at around 4.33 million KRW. Ethereum has risen by about 32% since the U.S. presidential election.

There is also analysis that the recent U.S. spot buying pressure is leading the market's recovery. Global cryptocurrency exchange Bitfinex stated in a recent research report, "The recent cryptocurrency market has rebounded due to high demand from institutional investors and aggressive spot buying pressure," and "Strong buying pressure has been observed particularly in U.S.-based cryptocurrency exchanges. A positive foundation is being formed that can sustain a bullish trend in the medium term." However, there are also observations that signs of exhaustion in buying pressure in the spot market are appearing, which could increase volatility in the short term.

With recent improvements in macroeconomic indicators, there are also expectations that the altcoin market will continue its long-term bullish trend. Cryptocurrency strategist Michael van de Poppe stated, "The Dollar Index (DXY), which represents the value of the dollar against six major currencies including the Euro, has recently fallen by more than 1 percentage point, and bond yields are also on a downward trend," and "Altcoins may experience adjustments in the short term, but a bullish trend similar to the 2017 bull market will continue." Typically, Bitcoin prices are inversely related to the value of the dollar. Additionally, when market interest rates fall, there is a tendency for funds to flow into risk assets. There is also a forecast that the price direction of altcoins will be determined by the direction of Bitcoin, the leading cryptocurrency.

Kang Min-seung, Bloomingbit Reporter minriver@bloomingbit.io