Sharp Decline in Whale Transactions for BTC and ETH
A significant drop in whale transactions for Bitcoin (BTC) and Ethereum (ETH) has been observed, with volumes nearly halving since March 2024. Despite the reduced transaction activity, whales continue to accumulate assets, indicating confidence in the long-term prospects of cryptocurrency.
Whale Transactions: A Closer Look
In a recent post by Santiment, the cryptocurrency market recorded a decline in investor activity across major assets like BTC and ETH. Whale transactions, defined as those exceeding $100,000, have decreased, prompting interest in the behavior of large holders and the possible effects on the crypto space.
- Bitcoin (BTC): Between March 13-19, Bitcoin saw 115.1K whale transactions. By August 21-27, this number dropped to 60.2K, nearly half of the earlier figure.
- Ethereum (ETH): Ethereum experienced a sharper decline, with whale transactions falling from 115.1K in mid-March to just 31.8K by late August.
Understanding Whale Behavior
Historically, whale activity tends to surge during periods of high market volatility rather than more stable periods. The current reduction in transaction volume might suggest a period of relative market calm, where major players are less active on exchanges but still maintain significant positions.
Despite the reduction in large transactions, data from Santiment indicates that whales are still accumulating assets. This steady accumulation has led analysts to argue that large holders are strategically positioning themselves, possibly in anticipation of future market movements.
Bitcoin and Ethereum Price Movements
According to CoinMarketCap, Ethereum (ETH) is currently outpacing Bitcoin (BTC) in price gains, achieving a peak gain of close to 4% with a trading price of $2,517.21. However, as the period progresses, both cryptocurrencies exhibit a downward trajectory.
Despite this decline, Ethereum has consistently maintained a higher percentage gain than Bitcoin, which is trading at $58,947.54. In contrast, Bitcoin’s price remains relatively stable, hovering between 1-2%, while Ethereum displays greater volatility during this period.
Ecosystem
Research
News Network
About