According to Santiment, a cryptocurrency monitoring firm, certain investors' behaviors in the crypto market have revealed where they are allocating their capital during the current bullish rise.
Tether (USDT) and USD Coin (USDC), according to Santiment, are stablecoins that are being acquired by "sharks," or companies that control between 10,000 and 100,000 of a certain cryptocurrency.
This illustrates the doubt that investors have over the sustainability of the most recent crypto market rise, according to the market intelligence company.
Tether and USD Coin shark addresses grabbed coins as cryptocurrency values rose. This accumulation often referred to as a "wall of fear," implies skepticism about the rally and reluctance to join.
Nevertheless, the July U.S. Consumer Price Index (CPI) announcement was good news for bitcoin investors. The value of the global cryptocurrency market is at $1.16 trillion, up 7.38% from the previous day, while trading volume has increased by more than 32%.
The price of bitcoin increased shortly after the U.S. Commerce Department's July inflation report, which revealed that prices were falling considerably more slowly than most experts had predicted.
Ether crossed the $1.9 barrier for the second time in three days, increasing by more than 12% over the previous day. The second-largest cryptocurrency by market value has been growing even before the CPI report.
It's almost time for the long-awaited Ethereum blockchain Merge, which will change the protocol from proof-of-work to a proof-of-stake paradigm that consumes less energy. The majority of other well-known cryptocurrencies were also enjoying the sunshine, with big gains being made by XRP, Cardano, and Solana.
Many experts are still unsure about the long-term effects of recent price rises, though. Analysts are not yet certain that the market will turn around because the Fed is still rising interest rates and there is still a high level of inflation.
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