Bitcoin’s whale transactions surged to their highest point in over 10 weeks, with Santiment reporting a remarkable 11,697 transfers worth over $100,000 on Tuesday alone.
The activity rose on Wednesday, marking another significant day for the world’s largest cryptocurrency.
Currently trading at $67,323.94, Bitcoin has seen a notable 10.71% rise in the past week, signalling increasing interest and movement in the market.
Despite this growth, experts hint that the rally could pause due to profit-taking by key stakeholders and a wave of crowd enthusiasm, commonly referred to as FOMO (Fear of Missing Out).
Bitcoin Witness Growing Social Media Interests
Social media conversations have heavily shifted towards Bitcoin, with the cryptocurrency accounting for over a quarter of all crypto-related discussions. This dominance over altcoins highlights a growing focus on Bitcoin as traders become optimistic after the cryptocurrency surpassed $68,000 for the first time since July.
However, some analysts remain cautious, suggesting that while short-term corrections might occur, the overall outlook for Bitcoin remains positive due to strong mid- and long-term market indicators.
The increase in whale activity, which is defined as big Bitcoin transactions carried out by high-net-worth individuals or institutional investors, has been a major factor in the price increase of Bitcoin.
Demand and market momentum have been greatly aided by these whales. According to research by CryptoQuant, investors are expecting the approval of more spot Bitcoin ETFs which might further consolidate Bitcoin’s market position. These buy-ins from institutions are a major factor behind the restored market confidence.
Bitcoin 24 Hour Trading Volume Drops
Despite these bullish trends, the 24-hour trading volume for Bitcoin has seen a drop of 24.78%, suggesting some cooling off in short-term buying activity. However, Bitcoin’s market cap continues to grow, now standing at $1.33 trillion, up by 0.20%. This combination of increased whale transactions and sustained institutional interest reflects a broader trend of renewed faith in Bitcoin as a reliable store of value.
The combination of institutional demand, whale transactions, and favourable seasonal conditions is responsible for the recent spike in the price and activity of Bitcoin. Cryptocurrencies have historically shown a bullish trend in the fourth quarter of the year, and this year appears to be no exception.
This is corroborated by Sentiments data, which demonstrates that whale transactions have not only grown but are also starting to occur frequently in the market, pushing up prices.
Although some analysts predict that significant stakeholders’ profit-taking will cause Bitcoin’s ascent to stall, the general outlook is still optimistic.
Given the current favourable market conditions and the steady increase in institutional engagement, it seems likely that any short-term corrections will be temporary.