Bitcoin Whales Reducing Holdings as They Wait Out Market Volatility

Sep. 12, 2024. 1 min. read.

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Bitcoin’s large holders have gradually scaled back their coin holdings since March, but despite the apparent decline, experts suggest this is not a bearish sign. Instead, whales are strategically waiting for more favorable conditions amid ongoing volatility in the cryptocurrency market.

Blockchain analytics platform Santiment highlighted in a September 11 post on X that Bitcoin whale transactions have experienced a significant decline. Transactions valued above $100,000 have dropped by 33.6% since mid-August. In March, when Bitcoin reached a new high, weekly transactions involving whales amounted to 88,163. However, by mid-August, this figure had dropped to 58,539.

Despite this reduction in activity, Santiment emphasized that the decline doesn’t necessarily indicate bearish sentiment. “This does indicate that large key stakeholders continue to bide their time as they wait to make their next moves during times of extreme crowd greed or extreme fear,” Santiment explained.

Currently, the overall sentiment in the cryptocurrency market is one of “fear,” according to the Crypto Fear & Greed Index. However, analysts believe that the market’s volatility, while concerning to some, is likely temporary.

Daan Crypto, a well-known analyst, weighed in on the situation, stating, “Bitcoin CPI traders having a lot of fun again today I see. Both sides stop hunted multiple times. Quite a lot of volatility but nothing we’re not used to the past few weeks.”

Looking ahead, Bitcoin’s price could swing sharply in either direction. Analysts point to rising volatility indicated by expanding Bollinger Bands, suggesting a potential breakout. If Bitcoin rises, it may break resistance at $61,391, while a drop could see the price fall below $54,353, possibly revisiting the August low of $49,086.

Source: Bitcoin (BTC) Whales Cut Back on Holdings: Why It’s Not a Red Flag

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