Bitcoin: Decline In Whale Transactions, A Simple Pause Or A Major Hit In Sight?

The silence of Bitcoin whales worries some market observers, who wonder if a storm is on the horizon. Since March, transactions of these large players have dropped. Santiment, the blockchain analysis platform, reassures nonetheless by emphasizing that this inactivity could well be strategic. In the meantime, the crypto market lives to the rhythm of speculations and expectations of a new massive move.

Bitcoin whales waiting for a big move?

Since March, Bitcoin whale transactions, that is, wallets containing at least 10,000 BTC and investors capable of threatening market stability, have dropped dramatically. Santiment notes a 33.6% drop in transfers exceeding $100,000.

But market wary folks can rest assured: this drop is not necessarily a bearish sign. On the contrary, it could simply indicate that whales are waiting for a new opportunity to strike big.

• Bitcoin: -33.6% in transactions over $100,000;
• Ethereum: -72.5% for transactions of the same caliber.

According to Santiment, “the big holders continue to wait, anticipating their next move while the crowd oscillates between fear and euphoria“.

🐳 Cryptocurrency's whale transactions have seen a noticeable drop-off since mid-August

🪙 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

— Santiment (@santimentfeed) September 11, 2024

So, should we worry? Not so fast, because these players know better than anyone when to hit the gas pedal… or the brake.

The crypto market more volatile than ever

Meanwhile, the crypto market never really sleeps. Despite the decline in whale activity, volatility remains present. Some traders, as noted by Ajeet Khurana, prefer to focus on fundamentals:

“The price of Bitcoin is volatile, but stay grounded with common sense and a long-term vision“.

Moreover, according to the Crypto Fear & Greed Index, which currently shows a score of 31, worry still reigns in the hearts of investors. However, many see in this fear a buying opportunity, hoping for a return to peaks of $70,000.

For others, a plunge towards $45,000 could just as easily sow panic (FUD) before sparking a buying frenzy (FOMO) if the market rebounds. In short, even in a period of apparent calm, a storm could well be brewing behind the scenes.

And yet, Bitcoin whales have not remained so silent, having accumulated 133,000 BTC in one month. Enough to shake the market… or propel it.