Since Bitcoin reached a new peak in March, significant holders of the cryptocurrency have been reducing their holdings.
While this trend might suggest bearish sentiment, it may not be as concerning as it appears.
According to Santiment, a blockchain analytics firm, there has been a significant drop in high-value Bitcoin transactions by major stakeholders.
🐳 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 peakThis isn’t necessarily a bearish signal. Whales can be… pic.twitter.com/iGNRt2roPL
— Santiment (@santimentfeed) September 11, 2024
The firm reported a 33.6% decrease in weekly transactions over $100,000 since mid-August. This decline follows Bitcoin’s surge to a new high earlier in the year.
In March, there were 88,163 weekly transactions of $100,000 or more. By mid-August, this number had dropped to 58,539.
Despite the reduced activity, Santiment points out that this does not necessarily indicate a negative outlook. Large holders often adjust their trading strategies based on market conditions, whether bullish or bearish.
Currently, market sentiment remains cautious, with the Crypto Fear & Greed Index reflecting widespread apprehension. Analysts suggest that the ongoing volatility might be a temporary phase and that Bitcoin’s large holders are likely waiting for more favorable conditions to make their next moves.
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