Blockchain analytics firm Santiment has observed a drop in Bitcoin whale activity, but notes that this decrease may not necessarily have a negative impact on the price.
According to Santiment, since Bitcoin reached its all-time high on March 13, the volume of weekly transactions worth $100,000 or more has dropped by 33.6%. Ethereum, however, has seen an even steeper decline of 72.5% during the same period. Despite these numbers, Santiment emphasizes that this doesn’t automatically signal a bearish trend, as whales holding at least 10,000 BTC tend to remain active regardless of market conditions, both in bull and bear markets.
Bitcoin (BTC) Seeking Direction
The market sentiment, as reflected in the Crypto Fear and Greed Index, remains in the “fear” zone. The index currently sits at 31 out of a possible 100 points. In times like these, many investors view fear as a potential buying opportunity. While Bitcoin has slipped 0.97% since August 13, currently trading around $58,360, some analysts believe further declines could occur before reaching a market bottom.
On August 7, Markus Thielen, Head of Research at 10x Research, suggested that Bitcoin ideally needs to drop below $40,000 to set the stage for the next bull market. Meanwhile, Santiment stated that if BTC falls to $45,000, it could trigger fear, uncertainty, and doubt (FUD). However, should it surge toward $70,000, it could ignite a fear of missing out (FOMO) among investors.
As volatility continues to grip the crypto market, many traders are hopeful that this turbulence is only temporary. Reflexical founder Ajeet Khurana noted in a post on X (formerly Twitter) on September 11, “During periods of market turbulence, it’s easy to lose sight of the bigger picture.”
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