The purchasing power of the stablecoin of the giant whale account increased by more than 7% in one month

Whale accounts holding between $10,000 and $10 million in USDT have added $1.06 billion worth of USDT to their wallets in the past month, increasing their purchasing power by 7%.

Bitcoin (BTC) price struggled unsuccessfully to break above the $40,000 resistance level over the weekend and is currently trading just above $38,000. While BTC is hovering at a 40% discount from its all-time high, whales have begun to accumulate more stablecoins.

According to data from Santiment, whale accounts with 10,000 to 10 million USDT in their wallets have amassed more than $1 billion in purchasing power over the past month. The data shows that the purchasing power of these giant whales has increased by more than 7% in just one month.

Purchasing power is defined as the ability to buy bitcoin with a stablecoin, driving its price up. When the price of Bitcoin is low, the stablecoin supply is able to buy a larger share of the circulating BTC supply, causing the price to rise, and thus high purchasing power, and vice versa.

The massive accumulation of stablecoins by giant whales shows that they are waiting to buy BTC at lower prices, showing a bullish outlook for the market. BTC outflows from exchanges also support this sentiment. In 21 of the past 26 weeks, BTC supply has flowed out of exchanges higher than inflows.

Bitcoin’s close correlation with the S&P 500 has also been cited as one reason for its current lackluster price momentum, while gold rose to multi-week highs. However, the price momentum is quite similar to the first half of 2021, with gold outperforming BTC in the first two quarters, while BTC maintains a strong correlation with the stock market.

By the middle of the third quarter, BTC broke its correlation with the stock market, rising to new highs, while gold plummeted to new lows.