UTXO Value Bands indicate increased activity among big Bitcoin players as they control a significant portion of the market.
The UTXO is a fundamental aspect of the Bitcoin network , which defines where a transaction starts and finishes. It also explains about discrete BTC pieces that can act as input in a new transaction.
UTXO (Unspent Transaction Output) is a transaction output by the network to provide a non-exact change in each business deal. An unspent cryptocurrency in each transaction provides a basis for accounting measures.
As per analytical firm CryptoQuant , the UTXO Value Band says that large players control a significant amount of Bitcoin. According to the analysis, Dolphins (100-500 BTC) and Sharks (500-1,000 BTC) control 29.57% of the market suggesting that mid-sized players hold a substantial share of bitcoins.
What does it mean
As the dominance of large players increases it means the market has become more sensitive to the actions of large players transforming into significant price fluctuations with respect to buy and sell activities.
Further as per the Bitcoin Address Balance Distribution by Cohorts, which controls 31.57% of the market, are just 4151, indicating big players are still relatively small despite the rising popularity of cryptocurrencies.
