Bitcoin Whale Transactions Slow Down
12 Sep, 2024 ● Coin news
Bitcoin whales have reduced their activity since the cryptocurrency reached a new high in March and are currently waiting for the next major buying or selling opportunity, according to recent data.
“Cryptocurrency’s whale transactions have seen a noticeable drop-off since mid-August,” blockchain analytics platform Santiment reported in a September 11 post on X.
Santiment highlighted that weekly Bitcoin transactions of $100,000 or more have decreased by 33.6% since March 13, the day Bitcoin hit its all-time high of $73,679.
Ethereum experienced an even steeper decline, with transactions dropping by 72.5% over the same period.
The analytics firm pointed out that this reduction in whale activity is not necessarily a bearish indicator. Whales — wallets holding at least 10,000 BTC — can be active during both bull and bear markets.
It further explained that “large key stakeholders continue to bide their time as they wait to make their next moves during times of extreme crowd greed or fear.”
The overall sentiment in the crypto market remains one of "fear," as indicated by the Crypto Fear & Greed Index, which currently shows a score of 31 out of 100.
Investors often view market fear as a buying opportunity. Although Bitcoin has fallen by 0.97% since August 13, trading at $58,360, some analysts suggest the asset has further to decline before it reaches its cycle bottom.
On August 7, Markus Thielen, head of research at 10x Research, suggested that Bitcoin needs to drop to the "low 40,000s" to properly time the "next bull market entry."
Santiment stated that if Bitcoin drops to $45,000, it could trigger fear, uncertainty, and doubt (FUD), but if it climbs back to around $70,000, it could lead to fear of missing out (FOMO).
Meanwhile, crypto traders anticipate that the current market volatility is a short-term event and something they have encountered before.
Reflexical founder Ajeet Khurana explained in a September 11 X post: “In times of market turbulence, it’s easy to lose sight of the bigger picture.”
“Bitcoin price is volatile, but focus on fundamentals, stay grounded in common sense, and keep a long-term vision. True value stands the test of time,” Khurana stated.
Pseudonymous crypto trader Daan Crypto Trades added, “Quite a lot of volatility but nothing we’re not used to the past few weeks.”
Sources:
https://cointelegraph.com/news/bitcoin-whale-transactions-decline-march-all-time-high-santiment
https://x.com/santimentfeed/status/1833888352246067502
https://alternative.me/crypto/fear-and-greed-index/
