The recent policy decision from the Federal Reserve on January 29 has triggered heightened volatility in the cryptocurrency market. In particular, several altcoins are exhibiting alarming signs as substantial transfers to exchanges by major holders, or whales, have raised concerns about their stability. Data compiled by Santiment on January 30 shows that assets such as Worldcoin (WLD) and Movement (MOVE) are particularly vulnerable due to increased activity of whale transfers.
Which Altcoins Are Most Affected?
According to Santiment’s findings, in the previous 24 hours, WLD and Lido Staked ETH (stETH) have experienced the most significant whale activity, with 0.21% and 0.20% of their supplies moving to Bybit respectively. This influx of transfers creates potential selling pressure in the short term.
Can Altcoins Survive This Market Shake-Up?
Despite these risks, certain altcoins have shown resilience. For instance, Mantra (OM) and Reserve Rights (RSR) have seen 0.20% and 0.14% of their supplies transferred to Binance. The market’s overall recovery, following the Fed’s interest rate decision, has led to price increases for some altcoins, yet uncertainty looms due to the potential for panic selling.
- WLD rose 2% to $1.78.
- OM surged 4% to $4.76.
- StETH and RSR saw increases of 1% and 3% respectively.
- MOVE and MKR experienced minor declines of 1.5% and 1%.
Adding to the chaos, a wallet connected to Donald Trump purchased 2.4 million MOVE coins, which may influence interest but also introduces uncertainty regarding short-term market dynamics. As stakeholders await further macroeconomic updates and regulatory news, the future trajectory of these altcoins remains precarious.
