Ethereum whales go on a buying binge, indicating that the price of ETH will rise significantly despite the high level of uncertainty surrounding ETH.
The choice of Ethereum whales to make substantial purchases during a recent decline in price has strengthened market optimism on the second-largest cryptocurrency by market capitalization.
Ali Martinez, a cryptocurrency analyst, disclosed on Friday that amid the recent volatility of the token’s price, the big investors, referred to as whales, purchased 100,000 ETH.
Despite this FOMC’s unchanged interest rates and the impending release of U.S. PCE inflation statistics, market observers expect price increases in the aftermath.
Ethereum Whales On Purchase Spree
Ethereum whales bought more than 100,000 coins during the current price decline, according to an X post by Ali Martinez on January 31.
The significant purchase indicates a possible “buy-the-dip” mentality among major investors. Given increased buying pressure and growing interest in the cryptocurrency, long-term outlooks for its price are still optimistic.
Additionally, it’s important to note that Trump World Liberty Financial recently purchased $250 million worth of Ethereum. Joseph Lubin, the co-creator of Ethereum and the founder of ConsenSys, disclosed on X that the project is looking to establish a DeFi business at the time of the significant acquisition.
It is important to note that the coin now experiences high volatility in the context of broader market movements, even though these occurrences indicate bullishness on future price moves.
Current U.S. Economic Data Leaves the Market Uncertain
The cryptocurrency market reflects an overall lack of investor interest in anticipation of today’s PCE inflation data announcement. Friday saw volatility in Bitcoin and other cryptocurrencies as another significant event that impacted the market mood.
Interestingly, the most recent FOMC meeting in the United States opted to maintain interest rates at 4.25% to 4.50%. Since investors would wish to reduce losses by increasing their investments in U.S. dollar-backed assets, this data highlighted worries about risky assets like cryptocurrency.
However, big investors are processing the Fed’s most recent decision while waiting for the PCE inflation figures to subside. The massive buy by Ethereum whales strongly indicates this market anticipation.
