Bitcoin Network Activity Declines Significantly in Recent Weeks
According to the latest on-chain revelation, the Bitcoin network has been experiencing a steady decline in high-value transactions over the last few weeks. This sluggish activity has been mirrored by the price of the premier cryptocurrency, which has struggled to break out of consolidation throughout the month of April.
Analyzing the Influence of Whale Activity on BTC Price Movement
Prominent crypto analyst Ali Martinez revealed that Bitcoin whale activity has been declining steadily in the past six weeks. This revelation is based on Santiment’s Whale Transaction Count metric, which tracks the number of BTC transactions worth more than $100,000 and $1 million.
- Whales refer to entities or individuals that own substantial amounts of a particular cryptocurrency.
- They hold significant influence over market dynamics due to their capacity to execute large transactions.
The Impact of Whale Transactions on Bitcoin Price
Martinez highlighted a noticeable decline in Bitcoin whale activity since March 14, the same day the premier cryptocurrency hit a new all-time high price of $73,737. This dip in activity coincided with the recent underperformance of Bitcoin’s price.
- An increase in high-value transactions could potentially boost the price of BTC.
- A surge in network activity could imply high demand for Bitcoin, leading to elevated prices.
Charting the Relationship Between Whale Activity and BTC Price
The chart below shows that the peak of the whale transaction count correlates with the new record-high price of BTC.
Bitcoin is currently trading just above $64,000, reflecting a 1.6% price increase in the past day.
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