Analysts at analyst firm Santiment claim that despite the fall in the crypto market ahead of the US Federal Reserve’s May decision, large investors have been aggressively buying up ethers and Binance Coin.
Santiment experts report that investors with wallet balances of between 1,000 and 10,000 ethers bought another 142,000 ethers in a short period of time.
This brings the total balance of these investors to more than $407 million. Santiment notes that the surge in accumulation comes after a nearly four-month period of stagnation that began late last year.
“Large investors interested in ETH are showing a drive to accumulate, adding another 142,000 ETH in the last 10 days. After a long slump that began in mid-December, this is the most sustained accumulation trend we have seen in the past four months,” experts say.
Analysts say large investors in Binance Coin (BNB) have also recently increased buying activity, which the agency believes could be a sign of an impending trend reversal.
Analyst firm Santiment warns investors that the strong volatility seen in cryptocurrency markets over the weekend should continue as the next US Federal Reserve (Fed) interest rate hike decision approaches.
“Cryptocurrency markets rolled back significantly this weekend, especially altcoin prices. Expect significant price volatility and it will persist on Monday and Tuesday as the date of the Fed’s interest rate hike decision in May approaches,” analysts said.
The situation observed in the cryptocurrency market coincides with Pantera Capital CEO Dan Morehead’s prediction that a tightening of US Federal Reserve policy will lead to a large-scale capital flow from stock exchanges to the cryptocurrency market.