The latest analysis by Santiment has revealed a significant decline in whale activity across major crypto assets, such as Bitcoin and Ethereum. The number of transactions valued at over $100k has dropped noticeably from the highly active period of March to August. Bitcoin, which previously saw 115.1k transactions, now only accounts for 60.2k transactions, showing a clear slowdown. Ethereum has mirrored this trend, with its whale transactions decreasing from 115.1k to just 31.8k over the same period. Other major assets like XRP, Toncoin, and Cardano have also experienced similar trends.
While the reduction in high-value transactions may raise concerns, Santiment has pointed out that a decline in whale activity does not necessarily mean a bearish outlook for the market. The decreased transaction volumes could indicate a phase of market consolidation or a temporary lull in volatility rather than a sign of an impending downturn. In fact, the data suggests that top addresses are accumulating assets, possibly in preparation for future market movements. This strategic positioning by whales could signal a more cautious and calculated approach, with the aim of benefiting from potential price appreciation in the near future.
QCP Capital’s latest analysis paints a gloomy picture for Bitcoin and Ethereum. Bitcoin ended August down by 8.6%, struggling to recover from the ‘BOJ crash’ and failing to surpass the 65k mark. Ethereum faced an even worse fate, plummeting by more than 22% over the same period, with alleged selling by Jump Trading exacerbating its decline. Looking ahead, historical trends suggest a bearish outlook for September, with six out of the last seven months ending in the red, and an average return of approximately 4.5%. If this trend continues, Bitcoin could potentially drop to $55k. However, strong support is expected around the $54k level, which previously sparked a rebound in July.
Market Predictions
Despite the recent turbulence in the crypto market, the impact of economic data like Unemployment Claims and Non-Farm Payroll (NFP) reports is expected to be minimal. The influence of macro data on crypto prices has been dwindling, and as a result, this week’s economic reports are unlikely to significantly affect the market. Overall, the decline in whale activity, coupled with the bearish market trends and cautious accumulation by whales, paints a mixed picture for the future of the crypto market. It remains to be seen how these factors will play out in the coming months and whether they will lead to a recovery or further decline in crypto asset prices.
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