Alongside a lackluster market, there has been a significant decline in whale activity across most major crypto assets.
According to the latest analysis by Santiment, Bitcoin and Ethereum are seeing noticeable drops in $100k+ transactions.
Whale Activity Plummets
During the highly active period of March 13-19, Bitcoin saw 115.1k transactions valued at over $100k each, reflecting intense activity from large holders.
However, by 21-27 August, this number had nearly halved to just 60.2k transactions, indicating a significant slowdown. Ethereum mirrored this trend, with its whale transactions dropping from 115.1k to a mere 31.8k over the same period.
Similar trends are also seen across other top assets, such as XRP, Toncoin, and Cardano.
While this reduction in high-value transactions might seem concerning at first glance, Santiment noted that a decline in whale activity does not inherently imply a bearish outlook. In fact, whale behavior often aligns with periods of heightened market volatility, where large players move assets to capitalize on rapid price swings.
The current lower transaction volumes could suggest a phase of market consolidation or a temporary lull in volatility, rather than a precursor to a downturn, as per the crypto analytic platform’s tweet.
Moreover, the data suggests that among the transactions still taking place, there is a pattern of accumulation by top addresses. Even in the face of reduced overall activity, it essentially indicates that whales may be strategically positioning themselves for future market movements.
Instead of signaling an exodus from the market, the quieter activity could reflect a more cautious and calculated approach, with whales accumulating assets in anticipation of potential price appreciation in the near term.
What’s in Store for September?
QCP Capital’s latest analysis reveals that Bitcoin ended August down 8.6%, struggling to recover from the early month’s ‘BOJ crash’ and failing to rise above the 65k mark.
Ethereum fared even worse, plunging by more than 22% over the same timeframe, with alleged selling by Jump Trading exacerbating its decline.
Looking ahead, September’s historical trend leans bearish, with six of the last seven closing in the red and an average return of around 4.5%, which could see BTC drop to $55k if the trend persists.
Despite the recent turbulence, the Singapore-based trading app expects the crypto asset to find strong support around $54k, a level that previously sparked a rebound in July before reaching $70k. Meanwhile, this week’s economic data, including Unemployment Claims and Non-Farm Payroll (NFP) reports, are unlikely to significantly impact crypto prices given the waning influence of macro data on the market.