Armand Sirignan
Large Bitcoin players are gradually distancing themselves from the market, according to data
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Bitcoin whales are now distancing themselves from the market, with activity plummeting towards 2024 lows, as the latest data provided by Santiment suggests. Unfortunately, if BTC remains relatively neutral, this could signal increased selling pressure going forward.
Bitcoin whale wallets with 100 BTC or more continue to hold a high level of coins with a total of 11.79 million BTC, while whale activity has declined to its lowest level in 2024. There are currently 15,907 wallets holding at least 100 coins. Every time this indicator rises, there is a surge of new demand among whales, which should have a direct impact on Bitcoin's performance.
Interestingly, the decline in whale activity can also be seen as a positive sign for the market. If there are fewer actively traded whales, market volatility may be lower. When whales make large trades, they can have a large impact on the market and cause sudden price fluctuations. While reducing the activity of these large holders may result in a more stable and predictable market environment, this is not the reason people trade or hold cryptocurrencies.
Additionally, low whale activity may indicate that these large holders are satisfied with their current positions and are not looking to liquidate their holdings. This could signal long-term bullish sentiment, as whales often have a good understanding of market dynamics and trends. Their decision to hold rather than sell may reflect their confidence in Bitcoin's future price rise.
The recent decline in Bitcoin whale activity to its lowest level in 2024 may be concerning at first, but it also has some positive implications. Lower market volatility and the possibility of long-term whale holdings provide a more stable environment for small investors.
About the author
Armand Sirignan
