Whale activities in the cryptocurrency have sharply declined since mid August. Transactions of $100K or more in Bitcoin and Ethereum, the two largest cryptocurrencies, fell in the period. This suggests a changing trend in the industry. It highlights the decreased activity from significant holders as they continue to wait for possible changes in this market.
Bitcoin and Ethereum Whale Transactions Decline
According to the recent data from Santiment, the Bitcoin whale transactions are down by 33.6% from its peak activity recorded in March and April. In that time, the Bitcoin whale transactions reached 88,163 transactions while starting from mid-August, the number of transactions fell to 58,539 transactions every week.
🐳 Cryptocurrency's whale transactions have seen a noticeable drop-off since mid-August
— Santiment (@santimentfeed) September 11, 2024
🪙 Bitcoin: -33.6% drop in $100K+ transfers since March/April peak
🪙 Ethereum: -72.5% drop in $100K+ transfers since March/April peak
This isn't necessarily a bearish signal. Whales can be… pic.twitter.com/iGNRt2roPL
At the same time, the indicator of interaction with Ethereum showed a much higher decline in the activity of large whales. Ethereum’s $100K+ transactions reduced 72.5% to 29,864 within a week since mid-August from 108,596 in March & April. The sharp drop in activity of the whales on Ethereum shows that large volumes of transactions do not occur frequently within the network.
Whale Transactions Drop,Yet Accumulation Trend PersistMarket Sentiment and Future Trends
Despite the marked decrease in whale transactions, this isn’t necessarily a signal of bearish sentiment. Whale activity can happen in both bull and bear markets. It often coincides with extreme crowd behavior. Large stakeholders, often referred to as whales, typically wait for periods of extreme greed or fear in the market before making significant moves.
Market sentiment continues to be an influential factor that determines the whales’ behavior. The market, in the last six months, has become more sensitive with regard to mid-sized movements in crypto prices. There is anticipation of massive crowd FOMO (fear of missing out) if Bitcoin prices rise again to $70K, while if the prices fell down to $45K; then, there is expected FUD (fear, uncertainty, and doubt). This pattern of trading suggests that whales are waiting for these extreme reactions to unfurl themselves in the market.
While whale transactions have slowed, market participants are closely watching for signs of future movements. The decrease may just be down to passive holding by large holders, in anticipation of further fluctuations in the future.
