Whale Moves and Shiba Inu: What’s Going On?

In the world of cryptocurrency, the actions of crypto whales can really shake things up. Recently, Shiba Inu saw a record-setting inflow of SHIB tokens, thanks to internal fund movements at Crypto.com. This has got people talking about what it means for market sentiment and liquidity. Let’s dive into how whale activity plays out and how these moves affect the crypto scene.

Who Are the Crypto Whales?

Crypto whales are those individuals or businesses with a ton of cryptocurrency at their disposal. They can move markets, for better or worse, with their buying or selling. If you’re involved in crypto trading, especially on top crypto trading platforms or new cryptocurrency investment platforms, you need to keep an eye on them.

What Are Internal Fund Movements?

When exchanges like Crypto.com move funds around internally, it can easily be mistaken for real market-driven inflows. This can create a false sense of increased buying activity, which impacts how people view the market and its liquidity. For instance, when a huge amount of cryptocurrency is moved around internally, it can look like whales are accumulating, even if that’s not the case. This can result in more volatility and challenges regarding liquidity.

Shiba Inu’s Unusual Inflow

On January 7, 2025, Shiba Inu had one of the biggest daily inflows from large holders. Despite the token’s recent price issues, on-chain data showed that large holders’ netflow hit a staggering 33.59 trillion SHIB tokens, valued at about $739 million based on current prices. This amount is around 5.7% of SHIB’s total circulating supply, which is significant.

To put it in perspective, large holder inflows for SHIB have averaged about 600 billion tokens daily lately. While there have been spikes, they usually hovered below the 30 trillion mark in 2024. The last time the token saw inflows surpassing that level was back in July 2021, when it was still a fresh token and large transactions were more common due to its lower price.

Why the Spike Matters

This massive inflow of 33.59 trillion SHIB tokens has led to speculation about whale accumulation. However, it turns out that this was mostly due to internal fund movements by Crypto.com. They transferred over 32 trillion SHIB tokens across 20 different transactions to one unidentified wallet. This internal action is what caused the inflow spike, not external buying or significant market accumulation.

Market Sentiment and Challenges

This recent inflow happened during a broader market slump that saw Bitcoin drop to $94,000, causing $627 million in liquidations within 24 hours. Shiba Inu made up $1.57 million of these liquidations, with most ($1.39 million) coming from long positions. SHIB’s price remains under pressure, trading at $0.00002127 and reflecting a further 2.25% decline over the past 24 hours. The persistent bearish trend shows SHIB’s struggles to find upward momentum.

The record-high inflow from large holders for Shiba Inu is notable, but it doesn’t indicate significant market buying or whale accumulation. It’s more of a reflection of internal exchange transactions influencing on-chain metrics. With the crypto market in a retracement phase, Shiba Inu is facing the dual challenges of market pressure and investor caution.

The Role of AI in Whale Tracking

AI is crucial in figuring out whether inflows are real market-driven ones or just internal fund reallocations. AI algorithms can analyze massive datasets to identify trading patterns, forecast price trends, and spot anomalies that suggest internal fund movements. AI-powered trading bots and real-time monitoring systems can track transactions across wallets and look for suspicious patterns, potentially indicating internal fund reallocations. This helps uphold market integrity and provides traders and analysts with accurate insights.

Summary: Staying Afloat in the Crypto Exchange Market

Grasping how whale activity and internal fund movements work is essential for navigating the crypto exchange market. Traders and investors must recognize how these movements can sway market sentiment and liquidity. By using AI and other advanced analytical tools, they can better understand market trends and make informed investment choices. As the crypto market continues to change, staying updated and alert will be essential for success in this unpredictable landscape.