Crypto whales spotted buying massive amounts of Ethereum a little after news that the China digital yuan could actually be built on $ETH. The big question on everybody's minds is if or when Ethereum will rise up again and if it will be able to beat its previous all time high of around $4,000.
What are Crptocurrency Whales?
For those that do not know what crypto whales are, these refer to enormous accounts dealing in millions per trade. These moves can be so big that they sometimes directly affect the price of the cryptocurrency itself. The reason why they matter is crypto whales, since they are dealing with quite an enormous amount of money, and usually have good research backing them up.
Naturally, with a huge quantity of coins being traded, the market would move in some way. If whales buy up smaller cryptocurrencies, the price usually appreciates. Whales are also what really instigate pump and dumps with smaller cryptocurrencies but they can also be used as indicators that the cryptocurrency will go up some time in the future.
Crypto Whales Buy $ETH
When it comes to Ethereum, however, with a massive market cap, the price rarely fluctuates. Correlating certain news, crypto whales have been buying up massive chunks of $ETH shortly after the news by Coindesk broke out that the China digital yuan could be built on Ethereum.
According to the article, the former head of the official digital currency initiative at the PBoC or the People's Bank of China noted that the CBDCs or the central bank digital currencies are actually now set to be more "smart." It was also stated that one day, the currency could operate on blockchain networks like Ethereum for example.
CBDC Could be Built on Ethereum
The Science and Technology Supervision Bureau director of the China Securities Regulatory Commission reportedly stated that CBDCs should not actually attempt to be just another digital form of physical cash. It was noted that CBDCs should incorporate smart contract functionality according to the report of Sina Finance.
A Telegram group responsible for tracking whale movement online known as WhaleBotAlerts gave a series of notifications shortly after the news that big movement has been seen on Ethereum. Crypto whales have been buying up millions of dollars of Ethereum and although the price has not yet swelled up, it could still be seen as a sign that the crypto whales see something promising.
While whale movement is common, it is not usually made one after the other. This shows that the crypto whales might have the same mindset and even potentially see what is going to happen to Ethereum. Although this isn't a confirmation, at least this gives a sign as to what the crypto whales might see when it comes to the future of $ETH.
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Written by Urian B.