While Bitcoin’s 100+ BTC whale wallets continue to hold a high level of coins, totaling 11.79 million BTC, whale activity has dropped to its lowest level of 2024. There are currently 15,907 wallets holding at least 100 coins. Whenever the metric rises, we see a surge of renewed demand among whales, which should directly affect the performance of Bitcoin.
Interestingly, the drop in whale activity could also be seen as a positive sign for the market. With fewer whales actively trading, the market might experience less volatility. When whales make large transactions, they can significantly impact the market, causing sudden price swings. Reduced activity among these large holders can lead to a more stable and predictable market environment, but this is not why people trade and hold cryptocurrencies.
Additionally, less whale activity might indicate that these large holders are content with their current positions and are not looking to liquidate their holdings. This could suggest long-term bullish sentiment, as whales often have a better understanding of market dynamics and trends. Their decision to hold rather than sell might reflect their confidence in Bitcoin’s future price growth.
While the recent decline in Bitcoin whale activity to the lowest level of 2024 might initially seem concerning, it also offers some positive implications. Reduced market volatility and the potential for long-term holding among whales can provide a more stable environment for smaller investors.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
