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Bitcoin Whale Transactions Drop Since March Peak

Bitcoin whale activity has significantly declined since the cryptocurrency's price peaked in March, but analysts suggest this isn’t a bearish signal. Whales may be waiting for the next major buying or selling opportunity.

• Main Points:

  • Whale activity drops: Bitcoin whale transactions are down 33.6% since March 13.

  • Not a bearish sign: Whales are likely waiting for extreme market conditions before acting.

  • Market sentiment: The Crypto Fear & Greed Index is at “fear,” indicating potential buying opportunities.

  • Volatility expected: Traders anticipate short-term volatility but view it as part of the market cycle.

• Detailed Insights:

  • Whale activity drops: According to Santiment, Bitcoin whale transactions of $100,000 or more have dropped by 33.6% since Bitcoin’s all-time high of $73,679 in March. Ether whale transactions fell even further, down 72.5%.

  • Not a bearish sign: Santiment notes that this reduction in whale activity isn’t necessarily a bearish signal. Whales, wallets holding at least 10,000 BTC, often act during extreme market sentiment, whether bullish or bearish.

  • Market sentiment: With the Crypto Fear & Greed Index showing a score of 31 (fear), some investors see this as an opportunity to buy. Bitcoin has been down 0.97% over the past 30 days, trading at $58,360.

  • Volatility expected: Crypto traders, including Ajeet Khurana and Daan Crypto Trades, are unconcerned about recent volatility, citing it as a normal part of Bitcoin’s market cycle.

Related: Bitcoin Drops Amid Trump-Harris Debate, Pre-CPI Concerns

While Bitcoin whales have reduced their activity, market watchers see this as strategic, waiting for ideal market conditions to make their next move.

Crypto Market Explained: Why Is Bitcoin Price Up Today?

Bitcoin's price surged due to lower U.S. inflation, significant ETF inflows, and strong technical signals. The cryptocurrency market is gaining momentum as inflation fears ease.

• Main Points:

  • Lower CPI boosts Bitcoin: U.S. inflation dropped to 2.5%, strengthening Bitcoin’s appeal as an inflation hedge.

  • ETF inflows rise: Bitcoin ETFs saw $44.32 million in inflows, reflecting growing investor confidence.

  • Technical analysis: Bitcoin is poised to break $59,500, with potential to rise to $63,500.

  • Mining strength: Bitcoin’s network security improves as mining difficulty hits a new all-time high.

• Detailed Insights:

  • Lower CPI boosts Bitcoin: The latest U.S. Consumer Price Index (CPI) report revealed a lower-than-expected drop to 2.5% inflation. This easing inflation makes Bitcoin more attractive as a store of value, driving price gains.

  • ETF inflows rise: On September 11, spot Bitcoin ETFs recorded $44.32 million, with Fidelity’s FBTC leading at $12.57 million. This surge in demand indicates increasing confidence in Bitcoin’s long-term prospects.

  • Technical analysis: Bitcoin has gained 3% this week, breaking resistance at $57,022 after the CPI report. Currently trading at $58,281, Bitcoin is nearing key resistance at $59,500, with the potential to rise to $63,500.

  • Mining strength: Bitcoin’s mining difficulty reached a new all-time high of 92.67 trillion, strengthening the network and boosting investor confidence.

Related: Bitcoin Short Sellers ‘Likely to Get Burned’ if CPI Meets Expectations

Bitcoin's strong fundamentals and easing inflation are driving its current upward trend, with analysts eyeing further gains ahead.

3 Reasons Why Ethereum Price Has Lagged Behind Bitcoin in 2024

Ethereum has underperformed Bitcoin in 2024, reaching a 40-month low in its ETH/BTC pair. Key factors include lower demand for Ether, Bitcoin’s dominance, and sluggish Ethereum on-chain metrics.

• Main Points:

  • ETH/BTC underperformance: Ether has dropped 34% in the last 90 days, lagging behind Bitcoin’s 15% drop.

  • Bitcoin dominance: Bitcoin’s market dominance reached 58%, reducing investor interest in altcoins like Ether.

  • On-chain weakness: Ethereum’s active addresses and DApp usage are declining, reflecting reduced network activity.

• Detailed Insights:

  • ETH/BTC underperformance: Ether is down 34% over the last 90 days, while Bitcoin has only dropped by 15%. This led to the ETH/BTC ratio hitting a multi-year low of 0.04057, signaling a shift in investor preference toward Bitcoin. Spot Bitcoin ETFs have seen more success, driving Bitcoin’s price while Ether’s impact from spot ETFs remains minimal.

  • Bitcoin dominance: Bitcoin’s dominance in the market has steadily risen, reaching a 40-month high of 58%. This trend shows that investors are allocating more funds to Bitcoin over Ethereum, further weakening ETH’s performance against BTC.

  • On-chain weakness: Ethereum’s network activity is slowing, with daily active addresses down 7.7% over the last 90 days. Additionally, Ethereum’s DApp usage dropped 19% in the past month, while competing networks like Solana and Tron saw significant growth.

Related: Bitcoin Nearing “Grand Finale,” Says Top Trader

For Ether to rebound, it needs sustained network growth and increased user activity, while Bitcoin’s dominance continues to attract more investors.

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This article is not financial advice. Market conditions can change rapidly, and past performance does not guarantee future results