By mid-August, Bitcoin whale transactions decreased by 33.6% from their peak in March, a period when Bitcoin hit its all-time high value. Analysts suggest this drop indicates that major holders are gearing up for increased market volatility. Since mid-August 2024, the volume of Bitcoin whale transactions has steadied at around 55,000 to 59,000 per week, according to experts from Santiment. This figure shows a 33.6% decline since mid-March, when Bitcoin reached its historical peak.
Decline in Cryptocurrency Whale Activity
The frequency of significant cryptocurrency transactions has notably decreased since mid-August.
Bitcoin
Bitcoin has witnessed a 33.6% reduction in transactions worth $100,000 or more since its March/April peak.
Ethereum
Ethereum has experienced an even more substantial decline, with a 72.5% drop in similar transactions over the same period. According to Santiment, this trend doesn’t necessarily signal a bearish market. The reduced activity among whales might simply mean they’re biding their time for the right moment to make their next move, especially during periods of heightened market sentiment. “Large key participants are likely waiting for times of extreme greed or fear before making their next significant transactions,” stated Santiment experts. They predict that Bitcoin’s price could rise to $70,000, driven by FOMO (Fear of Missing Out), or fall to $45,000, triggered by FUD (Fear, Uncertainty, and Doubt). In the first scenario, increased buying pressure would result from fears of missing out on potential profits, whereas the latter would see selling pressure due to concerns about significant losses.
Previous Insights
Earlier, we discussed a report from Glassnode that corroborates these findings. According to Glassnode, the average investor doesn’t feel much stress 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 downturn by selling off assets during subsequent corrections. Until August 2024, whales were primarily accumulating Bitcoin, likely in anticipation of further price increases.
Conclusion
This drop in whale activity should not be seen as a disaster for the market but rather as a sign of caution among major players. Whether Bitcoin’s price soars or falls, understanding whale behavior can offer valuable insights for cryptocurrency enthusiasts, miners, and financial analysts alike.
