The Bitcoin network has seen a decrease in high-value transactions over the last few weeks, reflected in its stagnant price. According to crypto analyst Ali Martinez, Bitcoin whale activity has also been declining since late March, around the time BTC hit an all-time high of $73,737. Whales, entities holding large amounts of Bitcoin, can significantly impact market dynamics through their large transactions.
I’ve analyzed recent on-chain data and discovered that the number of high-value Bitcoin transactions has been decreasing noticeably over the past few weeks. This trend is reflected in the cryptocurrency market, where Bitcoin’s price has been unable to surge above consolidation levels during April.
Over the past week, I’ve observed Bitcoin’s price attempting to sustain itself above the $67,000 mark numerous times without success. Unfortunately, this resilience did not last long as the cryptocurrency took a turn for the worse and has since plunged by over 2%. As of current data from CoinGecko, this downward trend continues.
It’s intriguing to note that the latest blockchain statistics indicate that the market leader’s subpar price trend may continue unless there’s a significant change, particularly with regard to network usage.
Can Whale Activity Push BTC Price Beyond $73,000?
As a crypto investor keeping a close eye on market trends, I’ve noticed that the activity of significant Bitcoin investors, or “whales,” has been dwindling over the past six weeks according to prominent analyst Ali Martinez. He shared this insight using the X platform and referenced data from Santiment’s Whale Transaction Count metric. This valuable metric monitors transactions exceeding $100,000 and $1 million in value to provide us with a clearer understanding of these substantial investor movements within the Bitcoin ecosystem.
Individuals or entities holding large quantities of Bitcoin are referred to as “whales.” Due to their ability to conduct substantial transactions, whales carry considerable weight in the market and can instigate speculation or price fluctuations through their actions.
In his post, Martinez pointed out that there’s been a significant decrease in Bitcoin whale transactions since March 14, which is the day Bitcoin reached its new peak price of $73,737. This drop in whale activity has occurred hand in hand with Bitcoin’s recent price slump.
An expert in crypto analysis pointed out that a rise in significant transactions might rejuvenate Bitcoin’s price. The belief behind this is that heightened network activity may suggest robust demand for Bitcoin, ultimately driving up its cost.
Based on the chart, you’ll notice that the highest number of whale transactions occurs when Bitcoin reaches a new all-time high price.
Active Bitcoin Wallets On The Rise: Santiment
A noteworthy observation from the Bitcoin blockchain that could indicate growing interest and potentially positive price movements lies in the fact that the quantity of active Bitcoin wallets is surging at a brisk pace, as reported by Santiment, even amidst market volatility.
The number of non-empty Bitcoin wallets continues to increase at a rapid pace, despite volatile Bitcoin prices. In contrast, the growth of Altcoin wallets for assets such as Dogecoin has slowed down after significant price surges earlier in the year. Notably, the number of active Cardano wallets is among the few that have declined.
— Santiment (@santimentfeed) April 27, 2024
Approach one:
At present, Bitcoin is being bought and sold for around $64,000, representing a 1.6% rise in value over the last 24 hours.
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2024-04-28 11:28