Bitcoin Whale Activity Reaches Highest Weekly Levels Of 2023
23 March 2023 - 12:22AM
NEWSBTC
On-chain data shows the Bitcoin whales have continued to be active
recently, with the last week being their 2023 week with the highest
average activity. Bitcoin Whales Are Displaying Highest Activity In
16 Weeks As per data from the on-chain analytics firm Santiment,
Wrapped BTC (WBTC) has also seen high whale activity in the past
week. The relevant indicator here is the “whale transaction count,”
which measures the total amount of transactions being made on the
Bitcoin blockchain that is at least $100,000 in value. The $100,000
cutoff is chosen because generally, only the whales (both the small
and large ones) are capable of moving such a large amount of the
cryptocurrency in a single transaction. When the value of the whale
transaction count is low, it means there aren’t many large
transfers happening on the blockchain currently. Such a trend
suggests the whales aren’t that active on the network right now. On
the other hand, high values of the indicator imply whales have an
active interest in trading the asset at the moment. As the
transfers made by these whales are so large, enough of them taking
place at once can sometimes have the power to move the market.
Because of this reason, when the metric is showing this trend, the
asset’s price can experience some elevated volatility. Related
Reading: $28.7K Could Be Next Level To Break For Bitcoin, Here’s
Why Now, here is a chart that shows the whale transaction count, as
well as its 30-day moving average (MA), for both Bitcoin and WBTC
over the last few months: Looks like the value of the metric for
both the coins has been pretty high in recent days | Source:
CryptoQuant As displayed in the above graph, the Bitcoin whale
transaction count has been at relatively high levels recently as
the cryptocurrency’s price has observed a sharp uptrend. The daily
values, however, have actually gone down compared to the spikes
seen a week or so back. But the 30-day MA of the metric has only
been going up despite this, as those large spikes seen before were
more isolated, while the indicator has seen more consistently high
values in the last few days. The 30-day MA Bitcoin whale
transaction count has now hit the highest level in 16 weeks as
these humongous holders are now making more than 10,000
transactions per day. This suggests that Bitcoin whales have been
quite active on the blockchain recently. The WBTC whales, too, are
observing a period of elevated activity, as their 30-day
transaction count has reached a 15-week high now. WBTC is an ERC-20
token that’s backed 1:1 by BTC, meaning that its value is the same
as the latter. Related Reading: Can Crypto Rally Keep Up? This
Indicator May Suggest So As the whale transaction count indicator
doesn’t separate buy volume from sell volume, it’s hard to say what
effect the elevated values of the metric might have on the asset.
The effect could go either way, bullish or bearish. One thing,
however, that has generally held true is that the asset’s price
becomes more volatile when the whales are active like this. BTC
Price At the time of writing, Bitcoin is trading around $28,200, up
15% in the last week. BTC continues to move sideways | Source:
BTCUSD on TradingView Featured image from Richard Sagredo on
Unsplash.com, charts from TradingView.com, Santiment.net
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