SHIB and PEPE Whales Ramp Up Selling Amid Bitcoin-Driven Crypto Correction — Nearly $8 Million Worth Of Pepe (PEPE) Coins Deposited To Binance

The meme coin sector is taking a large hit, falling below a $50 billion aggregate market cap, aligning with the crypto market's volatile consolidation. Some of the largest Shiba Inu (SHIB) and Pepecoin (PEPE) holders, known as "whales," are generating buzz with major sell orders amid the sub-$60,000 Bitcoin (BTC) dip. These sell-offs drive the crypto market's fear and greed index (a tool created to assess market sentiment) to new lows, particularly in meme coins. Let's delve into some market analysis and on-chain data for a deeper look at what's happening!

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While Bitcoin is trying to stay afloat above $60k, the aggregate market cap for crypto fell to approximately $2.3 trillion, down from a $2.83 trillion market cap in April. This price action has sent shock waves throughout the crypto ecosystem, catalyzing large-scale altcoin sell-offs. Most altcoins have a tiny market cap compared to Bitcoin and are subject to higher volatility. Although altcoins have gained tremendous popularity since the last cycle, most exhibit price drops of 10-30% when Bitcoin falls just a few percent. 

Memecoins like SHIB and PEPE are no exception to this capitulation, with both facing substantial selling pressure. Binance's on-chain data shows how many of these tokens are being offloaded. Monitoring this data provides insight into exactly which wallets are liquidating their holdings and for how much. 

According to ‘Spot On Chain,' a reputable X account, 700 billion PEPE (worth around $8 million) was sold for an estimated loss of $3.47 million. The wallet now holds around 800 billion PEPE (worth $9.22 million). In a recent tweet, another whale transferred 1.1 Trillion PEPE (worth $14.2 million) to a Binance deposit address and is waiting to be unloaded. They stated this whale still holds 300 billion PEPE. These whales have downsized their positions by 47% and 79%, respectively. This illustrates that some of the biggest holders are getting shaken out of the market, fearing the worst is yet to come. It’s common for people to shift out of riskier positions when fear is high, even if that means cutting them for a loss. 

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‘Spot On Chain' also mentioned a similar phenomenon with SHIB, publicizing that a whale deposited their entire SHIB holdings (1.088 trillion tokens worth $18.12 million) into Binance. On-chain data shows this whale accumulated SHIB throughout November and December 2023, selling for an estimated $8 million in profit.

But what does whale selling mean and why should you care? 

According to FasterCapital, " … whales can influence the price of a particular coin or token by buying or selling large amounts. This can create a domino effect, causing other traders to follow suit and create a market trend." This shows how analyzing on-chain transactions and market sentiment can put you one step ahead.

This expedited liquidation from SHIB and PEPE underscores the precarious nature of crypto. This market correction highlights the inherent risks and volatility of investing in crypto. It's important to exercise caution with tokens vulnerable to market manipulation and understand how a few large players can significantly impact market dynamics. As the market's course unfolds, investors must navigate diligently to protect current holdings and use informed decision-making for new investments. 

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