Santiment, a leading crypto data analytics platform, has observed a significant decline in whale activity across major cryptocurrencies like Bitcoin and Ethereum.
Whale transactions worth $100,000 or more have dropped noticeably since the peak weeks earlier this year. However, the decline doesn’t necessarily signal an impending price crash. It might indicate a more strategic move toward accumulation, Santiment commented.
Bitcoin and Ethereum Whale Transactions Down
According to Sentiments data, whale transactions in Bitcoin experienced a sharp decrease of over 47% between March and August 2024. From March 13-19, Bitcoin recorded 115,100 whale transactions, while from August 21-27, the number had nearly halved to 60,200 transactions.
A similar trend was noted for Ethereum, where the decline in whale transactions was even steeper. Ethereum’s whale transactions dropped by more than 72%, falling from 115,100 in March to just 31,800 in August.
Even though these figures indicate a distinct decline in the volume of large-scale transactions, Santiment cautions against drawing hasty judgements. The platform clarified that a decrease in whale activity does not always indicate a bear market.
Whale trades have historically peaked at times of high volatility, suggesting that large holders are more active during these times of sharp price fluctuations. Santiment also noted that whales are still acquiring Bitcoin and Ethereum despite the decline in transaction volume.
Is This a Positive Development?
According to Santiment, this new behaviour in whales could be a good thing. Whales appear to be sticking onto their holdings rather than selling them off, probably in anticipation of a future bullish surge in the cryptocurrency market.
As of writing, the price of Bitcoin is $58,927.94, up a little less than 2% over the last day. Its 24-hour trading volume has, however, dropped by 2.47%, indicating a decline in market activity. In a similar story, Ethereum’s price has increased by about 3% to $2,517.32. Similar to Bitcoin, Ethereum’s 24-hour trading volume has decreased by over 6%.
In conclusion, even while whale activity in Bitcoin and Ethereum may have decreased, the fact that major investors are still adding to their holdings raises hopes for further price increases. Whales seem to be hanging onto their positions, probably anticipating a return of favourable market circumstances.