Bitcoin
Declining Bitcoin Whale Activity – Why a Turnaround Matters
According to the latest on-chain revelation, the Bitcoin network has been experiencing a steady decline in high-value transactions over the past few weeks. This slow activity was reflected by the price of the leading cryptocurrency, which has been struggling to break out of consolidation throughout the month of April.
Last week, the Bitcoin price struggled to maintain itself above $67,000 despite touching the level several times. Since then, the price of BTC has fallen and is down more than 2% in the last seven days, according to data from CoinGecko.
Interestingly, recent network data suggests that this dismal price performance could persist for the market leader unless there is a turnaround, especially in terms of network activity.
Could whale activity push BTC price beyond $73,000?
Prominent crypto analyst Ali Martinez took it to platform X to reveal that Bitcoin whale activity has been steadily declining over the past six weeks. This revelation is based on Santiment’s Whale Transaction Count metric, which tracks the number of BTC transactions worth more than $100,000 and $1 million.
Whales refer to entities or individuals that own substantial amounts of a specific cryptocurrency (Bitcoin in this case). As such, they hold significant influence over market dynamics due to their ability to execute large transactions, which can trigger speculation and potential price changes.
Martinez highlighted in his post that there has been a notable decline in Bitcoin Whale Activity since March 14, the same day the leading cryptocurrency reached a new high price of $73,737. This drop in activity coincided with recent Bitcoin price underperformance.
However, the crypto analyst mentioned that an increase in high-value transactions could breathe life into the BTC price. This is based on the reasoning that an increase in network activity could imply a high demand for Bitcoin, leading to high prices.
As shown in the chart below, the peak whale transaction count correlates with BTC’s new record price.
Source: Ali_charts/X
Active Bitcoin Wallets on the Rise: Santiment
An interesting piece data on chain This may suggest a growing demand for Bitcoin and an optimistic future for its price has come to light. According to Santiment, the number of active Bitcoin wallets is increasing rapidly despite the unstable state of the market.
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📊 The total value of non-empty #Bitcoin portfolios are growing rapidly despite unstable prices. #Altcoin portfolios for assets like #Dogecoin have flattened after huge increases earlier this year. #Cardano is one of the few networks that has seen active wallets drop. https://t.co/itg9qMes7c pic.twitter.com/yrOlEQw3jy
– Santiment (@santimentfeed) April 27, 2024
Active Bitcoin wallets refer to the total number of unique addresses that hold BTC. Santiment data shows that the number of these “non-empty BTC wallets” has increased by more than 2.5% over the past three months.
As of this writing, Bitcoin Trades just above $64,000, reflecting a 1.6% price increase from the previous day.
BTC price breaks above $64,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Unsplash, chart from TradingView