Overview
• The crypto market came under immense pressure on Friday as top news caused a flash sell-off.
• Whales are getting ready for the upcoming Bitcoin halving event, and exchanges were seen transferring 58 million Polygon MATIC tokens.
• On-chain analytics showed that USDC and USDT were the most sold tokens followed by WBTC and DAI.
Huobi Token Flash Crash
The crypto markets began to feel the heat when Huobi token (HT) was hit with a flash crash, resulting in total liquidations of over $393 million during the early New York trading session. The drop in price was so severe that it dragged Bitcoin down 10 percent below $20k. This caused many investors to fear that last year’s correction is still continuing, which could push Bitcoin towards $11k.
Whale Activity
Despite all this volatility, whales seem to be taking advantage of the situation by stocking up their assets in preparation for next year’s Bitcoin halving event, which is expected to bring forth a new bull market. This activity suggests that whales expect BTC prices to go up soon despite its recent dip.
On-Chain Analysis
An on-chain analysis conducted by Santiment revealed that USDC and USDT were the most sold tokens while WBTC was the third most purchased token on exchanges. Additionally, DAI, WBTC, USDC and USDT were found to be the most used smart contracts according to whalestats data. Moreover, Artificial Intelligence (AI) coins along with Zero Knowledge (ZK) coins led in terms of being traded cryptos in this time period.
Conclusion
Crypto traders should be prepared for more volatility ahead as whales continue their activity before BTC halving takes place next year. On-chain analysis shows an interesting trend where stablecoins such as USDC and USDT are dominating transfers while AI/ZK coins are leading in terms of trades made over this period of time
