The latest on-chain revelation indicates that the Bitcoin network has been experiencing a steady decline in high-value transactions over the last few weeks. This decline has been reflected in the price of Bitcoin, which has struggled to break out of consolidation in April. Despite touching the $67,000 level multiple times, the price of BTC has failed to hold above it, leading to a fall of more than 2% in the last seven days, according to data from CoinGecko.
Prominent crypto analyst Ali Martinez revealed that Bitcoin whale activity has been steadily declining in the past six weeks. This revelation is based on Santiment’s Whale Transaction Count metric, which tracks the number of BTC transactions worth more than $100,000 and $1 million. Whales are entities or individuals that hold substantial amounts of a particular cryptocurrency and have significant influence over market dynamics. Martinez noted a decrease in Bitcoin whale activity since March 14, coinciding with the decline in Bitcoin’s price performance.
Martinez mentioned that an increase in high-value transactions could potentially boost the price of BTC. A surge in network activity often implies high demand for Bitcoin, leading to increased prices. The chart presented by the analyst shows a correlation between the peak of the whale transaction count and Bitcoin’s new record-high price.
Despite the choppy state of the market, on-chain data from Santiment suggests increasing demand for Bitcoin and a potentially bullish future for its price. The number of active Bitcoin wallets, which represent unique addresses holding BTC, has been rapidly increasing. The total amount of “non-empty BTC wallets” has seen a growth of over 2.5% in the last three months.
While the decline in Bitcoin whale transactions and the sluggish network activity may have initially impacted the price of BTC, the potential for increasing demand and active wallets signals a possible turnaround in the market. As investors continue to monitor on-chain data and market trends, it remains crucial to stay informed and conduct thorough research before making any investment decisions in the cryptocurrency space.
Leave a Reply