The post Why Bitcoin Whales Reducing Activity Isn’t a Bad Sign appeared on BitcoinEthereumNews.com.

Bitcoin’s (BTC) large holders have gradually reduced their coin holdings since the cryptocurrency reached a new high in March. While this may seem like a bearish signal, there’s no need for concern. These major stakeholders are simply waiting strategically as the leading coin navigates ongoing volatility. Bitcoin Large Holders Bide Their Time In a September 11 post on X, blockchain analytics platform Santiment wrote that there has been a “noticeable drop-off” in crypto whale transactions since mid-August. The on-chain data provider noted a 33.6% decline in weekly BTC whale transactions valued above $100,000 since the coin surged to a new high in March. For context, weekly transactions of $100,000 or more involving Bitcoin totaled 88,163 when the coin climbed to its new high in March. As its price dropped, the whales reduced their trading activity. By mid-August, this had declined to 58,539 Bitcoin whale transactions weekly.  Read more: 5 Best Platforms To Buy Bitcoin Mining Stocks After 2024 Halving Crypto Whale Transactions. Source: X While this may come off to many as a bearish signal, the data provider noted that it may not be the case, as Bitcoin whales can be just as active in both bull and bear markets.  “This does indicate that large key stakeholders continue to bide their time as they wait to make their next moves during times of extreme crowd greed or extreme fear,” Santiment wrote. As of this writing, the overall sentiment in the cryptocurrency market is “fear,” as highlighted by the Crypto Fear & Greed Index. This sentiment continues to linger as BTC navigates ongoing volatility, which some analysts argue would be temporary.  “Bitcoin CPI traders having a lot of fun again today I see. Both sides stop hunted multiple times. Quite a lot of volatility but nothing we’re not used to the past…

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Filed under: News - @ September 12, 2024 8:21 am