bitcoin whale activity has seen a significant decline since the cryptocurrency hit its peak in March, according to recent data. In a recent post by blockchain analytics platform Santiment, it was revealed that large bitcoin transactions, typically valued at $100,000 or more, have dropped by 33.6% since March 13, coinciding with bitcoin's record high of $73,679.
Whale Activity Decline Not Bearish Signal
The decrease in activity from major bitcoin holders, known as "whales," is not necessarily a bearish signal, as suggested by Santiment. These whales, who hold at least 10,000 BTC, have a significant impact on market movements. They are active in both bullish and bearish markets, often waiting for extreme market sentiments to make significant moves.
According to Santiment, the drop in whale activity is also reflected in ethereum, with large transactions of $100,000 or more falling by 72.5% since mid-March. Despite these declines, Santiment emphasized that these trends do not automatically indicate a downturn. Rather, it could signify that these large stakeholders are strategically positioning themselves for future opportunities while closely monitoring market sentiment.
Currently, the overall sentiment in the cryptocurrency market leans toward fear. The crypto Fear & Greed Index, a widely followed sentiment indicator, has a score of 31, indicating prevailing fear. Historically, fear-dominated markets have been seen as potential buying opportunities, as prices tend to be lower during such periods.
While bitcoin has experienced a slight decline since mid-August, trading around $58,360, some analysts predict further downward pressure. Markus Thielen, head of research at 10x Research, suggested in early August that bitcoin could drop to the low $40,000 range before preparing for the next bull market. Santiment also noted that if bitcoin were to fall to $45,000, it could trigger fear, uncertainty, and doubt (FUD) in the market. Conversely, a rebound to $70,000 could spark fear of missing out (FOMO) among investors.
bitcoin-activity-reaches-three-year-low">bitcoin Activity Reaches Three-Year Low
The bitcoin network has witnessed a significant decline in activity, reaching levels not seen in three years. According to on-chain analytics platform CryptoQuant, there's a general sense of "disinterest" affecting the crypto market, with bitcoin transaction volumes notably decreasing.
In a recent blog post, CryptoQuant highlighted that active addresses on the bitcoin network, which peaked at nearly 1.2 million in mid-March, have now dropped to 838,000. By late August, this number further decreased to 744,000, marking the lowest daily count since 2021.
CryptoQuant contributor Gaah mentioned, "The total number of active addresses on the bitcoin network hit new lows in 2024, reaching levels similar to three years ago when bitcoin was trading at around $45,000." Fewer active addresses indicate a decline in network activity, signaling a decrease in transactions and possibly a lack of interest in utilizing the network.
