- AVAX, LINK, LTC, and PEPE saw significant losses, raising questions about market overreaction to Powell’s 2025 projections.
- Despite the downturn, whales, including large PEPE and ETH buyers, signal confidence in market recovery.
- A strategic whale continues to buy ETH, showing belief in its long-term growth despite recent dips.
The cryptocurrency market has faced a sharp downturn following the Federal Open Market Committee’s (FOMC) interest rate cuts, with both crypto and equities traders expressing concerns. While the immediate effect of the rate cuts wasn’t drastic, the real concern lies in Jerome Powell’s projection for 2025, which indicated a significant reduction in expected rate cuts.
Altcoins Suffer Major Losses Amid Market Concerns
Santiment highlighted that, in the past 24 hours, several major altcoins had seen significant declines, with Avalanche (AVAX), Chainlink (LINK), and Litecoin (LTC) each dropping by 16%. The meme token Pepe (PEPE) fared even worse, plummeting by 17%.
These sharp losses have raised questions among market participants: was the market overreacting to Powell’s comments, or does the drop represent an inevitable market correction? If the decline was indeed an overreaction, the assets that saw the biggest losses could present buying opportunities for investors looking to capitalize on discounted prices.
Whale Activity Shows Resilience Amid Market Drop
As the market witnessed widespread panic, whale activity has been an analyst’s focal point. According to data from Lookonchain, one significant whale took action to minimize losses by depositing 150 billion PEPE tokens (worth $2.72 million) into Binance just after the sharp price drop. This whale had previously withdrawn 150 billion PEPE and 60 billion SHIB tokens on November 28, facing losses of $219,000 on PEPE and $136,000 on SHIB at current prices.
Ethereum Whale Takes Advantage of Price Dip
In contrast to the panic surrounding the FOMC’s projections, a smart whale affiliated with Longling Capital has strategically purchased 6,000 ETH following the price drop. Known for a history of successful market timing, this whale has profited significantly from buying ETH at low prices and selling it at higher ones.
Since May 2023, this whale has acquired a total of 75,400 ETH worth $180.4 million at an average price of $2,392. It has also sold 50,800 ETH for $172.8 million at an average price of $3,401. This consistent strategy has led to a total profit of $83 million.
The sharp declines in altcoin prices present risks and opportunities for crypto investors. The significant price drops in popular tokens such as AVAX, LINK, LTC, and PEPE may have been an overreaction to recent market developments, suggesting that now could be an ideal time for strategic investors to consider buying the dip.
For Ethereum, the consistent whale purchases signal a strong belief in its future growth, making ETH a potential long-term investment despite recent dips. As Powell’s rate projections continue to influence market movements, crypto traders and investors must stay vigilant, analyzing both short-term price fluctuations and long-term trends to position themselves for success.
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