Cryptocurrency whale activity, specifically involving large transactions worth over $100,000, has seen a marked decline across major crypto assets, including Bitcoin (BTC) and Ethereum (ETH), according to the latest data from Santiment. For Bitcoin, the number of whale transactions reached a peak during the week of March 13-19, 2024, with 115,100 transactions. However, by August 21-27, 2024, this number had nearly halved to 60,200 transactions. A similar trend is evident for Ethereum. The same peak week in March recorded 115,100 whale transactions, while by the end of August, the number had dropped to 31,800 transactions.
While this decline in overall whale activity might seem concerning at first glance, it’s important to note that a reduction in large-scale transactions doesn’t necessarily signal a sell-off or an impending price drop. Historically, top cryptocurrency addresses, often referred to as ‘whales,’ tend to become more active during periods of high volatility. This pattern suggests that the current slowdown in transactions may not directly correlate with negative market sentiment.
Accumulation Continues Amidst Reduced Activity
According to the Santiment report, despite the decrease in transaction volumes, Santiment’s data indicates that accumulation by whales continues steadily. This suggests that while fewer transactions are occurring, large holders may still be quietly accumulating assets, possibly waiting for a more opportune time to make significant market moves.
The recent drop in whale transactions for both Bitcoin and Ethereum highlights a period of reduced market activity from major players. However, the continued accumulation trend indicates that whales remain engaged, potentially positioning themselves strategically for future market developments. As such, investors should stay vigilant and consider the broader context of whale behavior, particularly during times of low volatility, when major market shifts could occur unexpectedly.
