Bitcoin and Ethereum whales pile up cryptos even as activity falls to 50% of 2024 peak

VaselineSeptember 3, 2024

0 2 minutes read

Bitcoin and Ethereum whales pile up cryptos even as activity falls to 50% of 2024 peak

Bitcoin and Ethereum whale activity has fallen to nearly 50% of its 2024 peak seen in mid-March.
Analysts note that declining activity does not necessarily mean a sell-off, whales are steadily accumulating BTC, ETH.
Bitcoin and Ethereum are trading close to key support levels, falling slightly on Tuesday.

Bitcoin and Ethereum whale activity has slowed since mid-March 2024, when it peaked this year. In March 2024, Bitcoin and Ethereum prices peaked at $73,777 and $4,093. The two largest cryptocurrencies have seen a price correction since then.

Chain analysts note a decline in whale activity in Bitcoin and Ether

Analysts at crypto-intelligence platform Santiment have noted a significant decline in overall whale activity in Bitcoin and Ethereum compared to the peak seen in March 2024. The data shows that whale activity, defined as transactions valued at $100,000 and above, has decreased by almost 50%.

Bitcoin whale transactions fell from 115,100 to 60,200 from mid-March to August 2024. Similarly, Ethereum transactions were affected, from 115,100 to 31,800.

Bitcoin

Whales have seen declining activity across most cryptocurrencies

Analysts explain that a decline in whale activity does not mean that investors with large wallets are shedding their token holdings at a loss. However, top addresses historically become most active during periods of high volatility.

Santiment researchers explain that the data indicates a steady flow of BTC, the whales’ accumulation of ether, even as total transactions decline.

The general decline in whale activity in most crypto assets has become increasingly visible. 2024 BTC and ETH Transactions Peak Over $100,000 Compared to Recently:

Bitcoin:
March 13-19: 115.1K whale trades
August 21-27: 60.2K whale trades

Ethereum:
March… pic.twitter.com/kBseamXiCT

— Sentiment (@santimentfeed) September 3, 2024

Crypto intelligence tracker Spotonchain identified a whale wallet accumulating Bitcoin on September 2nd.

A smart whale with a profit of 62 million dollars withdrew 1,100 $BTC ($64.2 million) from #Binance 14 hours ago.

This whale is a savvy shopper $BTC at minimums and maximum sales:
• accumulated 2,947 $BTC (most of its holdings) in the pre-pump period (November 2023 – January 2024) at $44,300 on average;… pic.twitter.com/aCAX2xHoG0

— Spot On Chain (@spotonchain) September 3, 2024

Bitcoin and Ethereum are down slightly, down 0.17% and 0.53% respectively.

Frequently asked questions about Bitcoin, altcoins, stablecoins

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any person, group or entity, which eliminates the need for third parties to participate during financial transactions.

Altcoins are any cryptocurrency other than Bitcoin, but some consider Ethereum a non-altcoin because it is from these two cryptocurrencies that the fork occurs. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and therefore an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset they represent. To achieve this, the value of any stablecoin is tied to a commodity or financial instrument, such as the US dollar (USD), with its supply regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who want to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies in general are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin’s market cap to the total market cap of all cryptocurrencies combined. It provides a clear picture of Bitcoin interest among investors. A high dominance of BTC usually occurs before and during a bull run, where investors resort to investing in relatively stable and high market capitalization cryptocurrencies such as Bitcoin. A decline in BTC dominance usually means that investors move their capital and/or profits to altcoins in search of higher returns, which usually triggers a burst of altcoin rallies.

VaselineSeptember 3, 2024

0 2 minutes read