The crypto community is always eager to monitor crypto whale activity. Whales may be able to tell what the actual sentiment of the crypto market is. They can influence the market largely, as they control the market to an extent. A post shared by Santiment reveals a new trend related to whale activities: a notable decline in whale activities in the crypto market, particularly in the Bitcoin and Ethereum markets. Should crypto investors worry?
2024 Crypto Whale Watch: A Latest Update
As per the post, a significant drop in the number of whale transactions between March and August 2024. The post shares a few data sets to justify the argument. According to a data set related to Bitcoin, the BTC market, between March 13 and March 19, 2024, recorded 115.1K as whale transactions, but between August 21 and August 27, it slipped sharply to just 60.2K. A similar data set related to Ethereum conveys that the Ethereum market, between March 13 and March 19, registered 115.1K as whale transactions, but, like the Bitcoin march, it also experienced a sharp fall to 31.8K. Interestingly, the two top cryptocurrency markets show similar trends in the area of whale activities.
Should Cryptocurrency Investors Worry about the New Whale Trend? Expert Speaks
It is natural for investors to feel worried when they see a sharp decline in whale activities, as, in normal circumstances, a drop in whale activities leads to a drop in prices.
There is another theory related to this. What that says is that a drop in whale activities can be an indication of a drop in market volatility. Generally, whales tend to remain highly active during periods of high market volatility, and they tend to behave the opposite during periods of stability.
Santiment prefers to see the new whale trend as a positive development. It is of the opinion that currently whales are slowly accumulating assets.
In conclusion, it is sensible to buy the opinion of Sentiment. Maybe, whales are at present confident about the future growth of Bitcoin and Ethereum and so are holding these assets in anticipation of a possible bullish momentum in these two top cryptocurrency markets.
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Source: https://coinpedia.org/news/crypto-whale-activity-drops-should-investors-brace-for-a-market-shake-up/