Crypto market analysis agency Santiment has reported a significant decrease in whale trading activity since mid-August. Bitcoin transfers exceeding $100,000 have dropped by 33.6%, and Ethereum transfers above the same threshold have fallen by a substantial 72.5% since their peak in March/April.
However, Santiment emphasizes that this decline in whale activity isn’t necessarily a bearish indicator. Whales are known to remain active during both bull and bear markets. This current trend suggests that in times of extreme market sentiment, whether greed or fear, large key stakeholders tend to adopt a wait-and-see approach before making their next move.
Since Bitcoin reached its all-time high six months ago, the market has become highly sensitive to even medium-sized price movements. Based on observed sentiment patterns, a return to the $70,000 level would likely trigger significant FOMO (fear of missing out) among investors, while a drop to $45,000 could lead to widespread FUD (fear, uncertainty, and doubt).
Overall, while the decrease in whale activity might raise some eyebrows, it’s important to remember that it’s not a definitive signal of an impending bear market.
