Bitcoin whales have reduced their trading activity since the cryptocurrency achieved an all-time high, with data showing they are waiting for opportunities to engage in substantial buying or selling activities.

Reduction in Whale Activity

Analytics from Santiment reveal that transactions involving Bitcoin (BTC) of $100,000 or more have decreased by 33.6% since March 13, the date Bitcoin reached $73,679.

In comparison, Ether (ETH) has experienced an even steeper decline of 72.5% during the same timeframe.

Bitcoin whale transaction decline
Bitcoin whale transactions have dropped drastically since the peak in March. Source: Santiment

Santiment emphasizes that the decline in transactions does not necessarily indicate a bearish trend. Whales, defined as wallets that hold at least 10,000 BTC, can remain active during both bullish and bearish conditions.

These key stakeholders are believed to be waiting for optimal moments to make their next significant moves, particularly during phases of extreme market sentiment.

Market Sentiment and Investor Behavior

As it stands, the overall sentiment within the cryptocurrency space is categorized as “fear,” according to the Crypto Fear & Greed Index, which currently registers a score of 31 out of 100.

Historically, investors view fear as a potential entry point for buying. Despite Bitcoin experiencing a slight decline of 0.97% since mid-August, hovering around $58,360, some market analysts predict further downward movement before reaching a potential low.

Bitcoin price chart decrease
Current Bitcoin trends show a 0.97% decrease over the last month. Source: CoinMarketCap

In earlier comments, a researcher suggested that a drop to the “low 40,000s” could strategically position Bitcoin for a future bull market entry. Moreover, the possibility of a decline to $45,000 might instigate fear among investors but could lead to a fear of missing out (FOMO) if prices were to rebound towards $70,000.

Short-Term Volatility Perspective

Current market volatility is viewed by many traders as a temporary challenge rather than a cause for alarm.

Ajeet Khurana, founder of Reflexical, noted that amidst market turbulence, it is crucial to maintain a broader perspective and to adhere to sound investment fundamentals. He stated, “Bitcoin price is volatile, but focus on fundamentals, stay grounded in common sense, and keep a long-term vision.”

Another trader affirmed that recent volatility is expected and manageable, as it reflects patterns from the past few weeks.

Please note that this information does not constitute investment advice. Every trading and investment decision involves risk, and it is advisable for readers to perform their own research prior to engaging in any financial activities.