Cryptocurrency Whales Favor These 7 Altcoins While Shorting 6 Others – Key Insights from Alphractal Report
The cryptocurrency market is abuzz as whales—the large-scale investors known for influencing market trends—are taking clear positions on select altcoins. Alphractal, a leading crypto analytics firm, has released a new report analyzing whale behavior and macroeconomic influences, highlighting the digital assets they are bullish and bearish on.
This report sheds light on the interplay between macroeconomic shifts, particularly the declining Effective Federal Funds Rate (EFFR), and its potential impact on cryptocurrencies like Bitcoin and altcoins.
EFFR Decline: A Key Indicator for Market Trends
Alphractal emphasizes the significance of the ongoing decline in the EFFR, a metric historically linked to major economic shifts. The report highlights a trend: declining EFFR levels often coincide with financial crises or major policy changes.
The data includes detailed charts marking these periods with grey areas for EFFR drops and red zones for significant rate transitions. These changes have historically influenced markets, including digital assets like Bitcoin.
One notable insight: Bitcoin’s price volatility often follows EFFR declines, as observed since August 2019. However, Alphractal cautions that the effects of monetary policy shifts on Bitcoin and altcoins may manifest with delays, requiring investors to monitor both macroeconomic trends and crypto-specific metrics closely.
“Market reactions, including those in Bitcoin, may take months to adjust to changes in the EFFR, leading to significant volatility,” the report states.
Whale Sentiment: Longs vs. Shorts in Crypto Markets
The Alphractal report also delves into whale activity, providing a snapshot of the Long/Short ratio across the market, which currently sits at 3.0, indicating an overall bullish sentiment. However, Bitcoin’s more conservative ratio of 1.75 suggests tempered optimism.
When it comes to altcoins, the divide is clearer. Certain assets show high long participation, while others are being heavily shorted by whales:
Altcoins with Higher Long Participation:
- ONDO
- ETH (Ethereum)
- SOL (Solana)
- DOT (Polkadot)
- DOGS
Altcoins with Higher Short Participation:
- AGLD
- SXP
- SUI
Whale Preferences: Long and Short Positions
The report highlights specific assets favored by whales for long and short positions, offering a glimpse into large-scale investment strategies:
- Whales Prefer Long Positions:
- ARKM (Arkham)
- ALICE (MyNeighborAlice)
- Whales Prefer Short Positions:
- BNB (Binance Coin)
- PEPE
- TRX (TRON)
- ENA
Macroeconomics Meets Crypto: Key Takeaways for Investors
The report underscores the importance of combining macroeconomic analysis with crypto-specific data to navigate the volatile cryptocurrency landscape. With the EFFR declining and whales influencing market dynamics, investors must remain vigilant.
While Bitcoin shows some level of caution in its Long/Short ratio, altcoins are seeing strong polarizations, making them the focal point for market watchers.
Conclusion: Whales Shape Market Sentiment
The Alphractal report offers invaluable insights into how macroeconomic trends and whale activity are shaping the cryptocurrency market. Investors should pay attention to the altcoins attracting large-scale investments and the assets being heavily shorted by whales.
Whether you’re looking to go long on Ethereum (ETH), Solana (SOL), or Arkham (ARKM) or considering the bearish outlook for BNB, PEPE, or TRON, understanding whale behavior can provide a strategic edge in navigating the crypto market.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
