Significant Decline in Large Transactions for Bitcoin and Ethereum: What’s Behind It
Recent findings from Santiment, a platform specializing in market intelligence, reveal a significant downturn in whale activity within the realm of major cryptocurrencies. This trend, spanning throughout 2024, showcases a notable decrease in transactions exceeding $100,000 for Bitcoin and Ethereum, two of the most prominent assets in terms of market capitalization. Despite this decline, Santiment has underscored that this reduction in activity does not necessarily signify a bearish outlook.
During the week of March 13 to 19, Bitcoin whales engaged in 115.1K transactions surpassing $100,000. However, by August 21 to 27, this figure had dwindled to 60.2K transactions. Similarly, Ethereum exhibited a parallel pattern, with 115.1K transactions recorded in mid-March, dropping to 31.8K by late August. Nonetheless, Santiment has emphasized that such a decrease does not immediately translate to market selloffs.
Contrary to expectations, whale activity tends to intensify during periods of heightened volatility. Despite the decline in transaction volumes, data from Santiment indicates that whales are still accumulating assets, albeit at a slower pace.
Other cryptocurrencies like XRP, Toncoin, and Cardano have also witnessed a decline in whale transactions, aligning with the broader trend observed in Bitcoin and Ethereum. XRP’s activity, which peaked earlier in the year, stabilized above 1,000 transactions by September. Toncoin displayed a steady, low level of activity with minimal fluctuations, while Cardano experienced a significant drop, settling at 1,867 transactions by early September.
Beyond transaction numbers, specific whale behaviors shed light on the current market dynamics. Renowned crypto analyst Ali Martinez highlighted a surge in Bitcoin’s Taker Buy/Sell Ratio on HTX, indicating aggressive buying by whales. This behavior aligns with reports of substantial Bitcoin acquisitions by prominent whales.
For example, one specific whale augmented their holdings to 8,559 BTC, equivalent to around $493.18 million by September 2, following a series of purchases from a Binance hot wallet. Ethereum whales also made notable moves, with two major holders withdrawing stablecoins from Aave and acquiring 7,767 ETH valued at $19.22 million within a single day.
Additionally, on August 30, Martinez pointed out a 40,000 decrease in Bitcoin exchange supply within 48 hours, suggesting that significant investors capitalized on the dip. This swift reduction in Bitcoin availability hints at the entry of several large-scale buyers during that brief period.
It is essential to note that the information provided is for educational purposes and should not be construed as financial advice. The opinions expressed in this article are solely the author’s and do not necessarily reflect those of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, as The Crypto Basic disclaims any responsibility for financial losses.
