Bitcoin Whale Activity Drops by 33% Since March Peak

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By mid-August, Bitcoin whale transactions had decreased by 33.6% compared to their peak in March when Bitcoin hit its all-time high. This decline suggests that major holders are bracing for increased market volatility, according to analysts. Since mid-August 2024, the number of Bitcoin whale transactions has stabilized at around 55,000 to 59,000 per week, according to experts from Santiment. This figure represents a 33.6% drop since mid-March, a period during which Bitcoin reached its highest historical value.

Cryptocurrency Whale Activity Decline 🐳

Bitcoin

Bitcoin has seen a 33.6% reduction in transactions worth $100,000 or more since hitting its March/April peak.

Ethereum

Ethereum has experienced an even more significant decline, with a 72.5% drop in similar transactions over the same period. According to Santiment, this trend isn’t necessarily indicative of a bearish market. The reduced activity among whales could simply mean they’re waiting for the right moment to make their next move, especially during periods of extreme market sentiment. “Large key participants are likely waiting for times of extreme greed or fear before making their next significant transactions,” said Santiment experts. They forecast that the price of Bitcoin could rise to $70,000, driven by FOMO (Fear of Missing Out), or fall to $45,000, prompted by FUD (Fear, Uncertainty, and Doubt). In the former scenario, there would be an increase in buying pressure due to fears of missing out on potential profits, while the latter would see selling pressure due to concerns about significant losses.

Previous Insights

We previously discussed a report from Glassnode that aligns with these findings. According to Glassnode, the average investor doesn’t feel much pressure from unrealized losses due to recent Bitcoin price drops. However, short-term holders are more vulnerable. Glassnode experts suggest that this group is most likely to trigger a market collapse by selling off assets during subsequent downward corrections. Until August 2024, whales were primarily accumulating Bitcoin, likely anticipating further price increases.

Conclusion

This decrease in whale activity might not spell doom for the market but indicates caution among major players. Whether Bitcoin’s price skyrockets or plummets, understanding whale behavior can offer valuable insights for cryptocurrency enthusiasts, miners, and financial analysts alike.