Digital assets have dipped into a so-called “crypto winter” this year. Most major cryptocurrencies are trading 40% to 60% below their all-time highs set in 2021. It’s the perfect environment for bargain hunters with deep pockets.
In previous corrections, veteran investors with incredibly valuable crypto holdings have stepped in to take advantage of lower prices. This seems to be happening again now. Here are the top three digital tokens “crypto whales,” seem to be betting on.
It’s no surprise that the world’s most popular cryptocurrency is also popular with crypto whales. Many of the most technically savvy and experienced investors in this field made their wealth in Bitcoin. This is probably why they accumulate more during every bear market.
As the token fell to $38,000, wallet-tracker Whalemap noticed an uptick in activity from the largest accounts. Users with BTC balances ranging from 100 BTC to 10,000 BTC started accumulating more BTC as the market fell earlier this year.
Source: WhaleMap / Twitter
BTC whales also seem to be reacting to the retreat of retail investors. As the supply of BTC in circulation has increased recently, more whales are accumulating than ever before.
On the Ethereum network, one of the most popular cryptocurrencies at the moment is Dogecoin rival Shiba Inu. Of the 1,000 largest ETH wallets tracked by Whalestats, Shiba Inu was the second-most popular cryptocurrency. The wallets collectively hold SHIB tokens worth $1.1 billion at current valuation – which is larger than their USDC or LINK holdings by a wide margin.
Crypto whales could be rushing in as the token loses market value to take advantage of the dip. Some also speculate that veteran investors see Shiba Inu playing a key role in the metaverse as Shiba Inu Games launches to develop AAA gaming titles in the near future. Whatever the reason, it’s clear that influential ETH holders are betting their assets on this token.
Shiba Inu isn’t the most popular ETH holding for crypto whales. The top spot is occupied by FTX token – the native currency of the decentralized exchange. The top 1,000 largest ETH wallets collectively hold 36.5 million FTT. That hoard is worth $1.5 billion at the time of writing and accounts for 16.5% of all assets held by this group of ETH whales.
FTT is quickly gaining traction as more users migrate to the FTX exchange and Sam Bankman-Fried continues his relentless development of innovative projects. FTX recently bought an exchange based in Singapore to expand its footprint across Asia with a particular focus on Japan. These moves could make FTX a formidable rival to Binance.
Crypto whales have a track record of savvy moves. They’ve bought the dip in previous bear markets and this is partly the reason why their holdings are so valuable now. Tracking their moves in 2022, as a new crypto winter emerges, could be a good strategy for long-term investors.