Bitcoin And Ethereum Whale Transactions Drop, What Will Happen To The Crypto Market?

The Whale Bitcoin and Ethereum transactions have dropped (Photo; Doc. News Bitcoin)

JAKARTA - The latest data from Santiment, a leading blockchain analysis platform, revealed a significant drop in whale transactions (large holders) for the two main cryptocurrencies, Bitcoin and Ethereum. This decline has occurred since mid-month ago, marking the quiet of the market before possible storms.

According to a Santiment report, Bitcoin whale transactions have decreased by 33.6% since their peak in March and April. Meanwhile, a sharper decline occurred in Ethereum, with a decline in transactions of 72.5% in the same period. This drastic decline could initially cause concern among investors, but deeper analysis provides a different view.

Quoted from Blockchain Reporter, Santiment emphasized that this decline does not always indicate a bearish trend. On the contrary, in history, whales usually remain calm in the midst of extreme situations, both in the bear market and bull. This calm allows them to make transactions at the right moment, in line with the ongoing market conditions.

The decline in large transactions could be a sign that the whales are just waiting for the right time to take the next big step. As Santiment said, these large holders tend to move based on mass behavior. Whether in FOMO (Fear of Missing Out) or FUD (Fear, Uncertainty, and Doubt) conditions, they prefer to act in accordance with growing market sentiment.

Mass sentiment has had a major impact on the movement of crypto prices, especially when retail investors began to react emotionally to small price changes though. This is evident when Bitcoin hit its highest price six months ago, where relatively small market movements were able to trigger a major reaction from retail investors.

According to Santiment's analysis, if the price of Bitcoin manages to return to its previous high of close to 70,000 US Dollars (Rp1.07 billion), there is a high probability that the FOMO wave will hit the market. This could push prices even higher, with retail investors flocking to take advantage of the momentum of the increase.