Bitcoin (BTC) whale activity down: What does it indicate?

Blockchain analytics firm Santiment says the decline in Bitcoin whale activity may not negatively impact the price.

Santiment noted that Bitcoin’s weekly trading volume of $100,000 or more has fallen by 33.6 percent since March 13 (the day it reached its all-time high). #Ethereum experienced an even more significant 72.5 percent drop during the same period. The analytics firm emphasized that this is not necessarily a bearish sign, and that whales with at least 10,000 $BTC in their wallets can be equally active in both bullish and bearish markets.

According to the Crypto Fear and Greed Index, the general sentiment in the cryptocurrency market remains at the “fear” level. The index currently has a score of 31 out of a possible 100 points. Investors often view fear in the market as a buying opportunity. Bitcoin is trading at $58,360, down 0.97% since August 13, with some analysts believing that BTC will continue to decline further before reaching the cycle bottom.

On August 7, Markus Thielen, Head of Research at 10x Research, said that Bitcoin should ideally test below $40,000 for “the next bull market entry.” Santiment said that if #Bitcoin were to fall to $45,000, it could trigger fear, uncertainty, and doubt (FUD), while if it climbs to around $70,000, it could trigger fear of missing out (FOMO).

Meanwhile, cryptocurrency investors expect the current market volatility to be short-term. “During times of market turbulence, it’s easy to lose sight of the bigger picture,” Reflexical founder Ajeet Khurana explained in a September 11 post on X .