Bitcoin Sees 33.6% Drop in Whale Transactions Since March Peak

Bitcoin whale activity has significantly decreased since the cryptocurrency reached its yearly high in March, according to recent data.

In a recent post on X, blockchain analytics platform Santiment revealed that large Bitcoin transactions, typically valued at $100,000 or more, have declined by 33.6% since March 13.

The date coincides with Bitcoin reaching an all-time high of $73,679.

Whale Activity Decline Not Bearish Signal

The slowdown in activity from major Bitcoin holders, often referred to as “whales,” is not necessarily a bearish signal, Santiment suggests.

These whales, defined as wallets holding at least 10,000 BTC, are known for their influence on market movements.

They tend to be active in both bull and bear markets, often waiting for periods of extreme market sentiment, such as heightened fear or greed, to make significant moves.

In its report, Santiment noted that the drop in whale activity is mirrored in Ethereum (ETH) as well, with large transactions of $100,000 or more plunging by 72.5% since mid-March.

Despite these declines, Santiment emphasized that such trends do not automatically signal a downturn.

Instead, it could indicate that these large stakeholders are positioning themselves for future opportunities as they monitor market sentiment closely.

Currently, the overall sentiment in the cryptocurrency market leans towards fear.

The widely followed Crypto Fear & Greed Index, which measures market sentiment on a scale from 0 (extreme fear) to 100 (extreme greed), has a score of 31, indicating that fear prevails.

Historically, investors have viewed fear-dominated markets as potential buying opportunities, as prices tend to be lower during such periods.

While Bitcoin has experienced a slight decline of 0.97% since mid-August, trading at around $58,360, some analysts believe the asset could face further downward pressure.

Markus Thielen, head of research at 10x Research, predicted in early August that Bitcoin could dip into the low $40,000 range before positioning itself for the next bull market.

Santiment also suggested that if Bitcoin were to drop to $45,000, it could spark a wave of fear, uncertainty, and doubt (FUD) in the market.

However, if the cryptocurrency rebounds to around $70,000, it might ignite a fear of missing out (FOMO) among investors.

Bitcoin Activity Reaches Three-Year Low

The Bitcoin network has experienced a significant drop in activity, reaching levels not seen in three years.

According to onchain analytics platform CryptoQuant, a general sense of “disinterest” is affecting the crypto market, with Bitcoin transaction volumes notably declining.

In a recent Quicktake blog post, CryptoQuant said that active addresses on the Bitcoin network, which had reached nearly 1.2 million at their peak in mid-March, are now down to 838,000.

In late August, this figure dropped even further to just 744,000, marking the lowest daily tally since 2021.

“The total number of active addresses on the Bitcoin network hit new lows in 2024, reaching levels similar to three years ago when Bitcoin was trading at around $45,000,” wrote CryptoQuant contributor Gaah.

He added that fewer active addresses indicate a decline in network activity, meaning fewer transactions are taking place, which may signal a lack of interest in using the network.

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