Amidst the global economic uncertainty, the volume of Bitcoin (BTC) and Ethereum (ETH) whales transactions have seen a sharp decline. Blockchain analytics platform Santiment noticed the trend, citing that it started in mid-August. Market observers and experts are concerned about what this trend could mean for the underlying assets.
Massive Drop in Bitcoin And Ethereum Whale Activity
Precisely, Bitcoin whale transfers, that is transactions worth more than $100,000, saw a 33.6% drop since March/April peak. This is despite BTC whales accumulating the coin recently. Also, Ethereum whale transfers experienced a 72.5% drop during the same time. Per the Santiment analysis, this trend does not necessarily signifies a bearish signal.
For perspective, the crypto analytics firm noted that whales can be active during a bull market just as they can during a bear market. What Santiment seemed sure about is the fact that large stakeholders continue to bide their time as they wait to make their next moves during times of extreme crowd greed or extreme fear.
Generally, the crypto community has been very reactive to mid-sized swings especially after BTC hit a new all-time high (ATH) of over $73,000 six months ago. It is perceived that a return to $70,000 level would likely come with major crowd FOMO, while a major dip towards $45,000 would likely lead to panic selling.
US CPI Data to Boost Crypto Market
Currently, the Bitcoin whales are displaying some confidence and this could be linked to the United States Federal Reserve Consumer Price Index (CPI) data that was released today. The US CPI data showed that the inflation cooled to 2.6% in August, down from the market expectations.
The better than expected data seem to have boosted the current market sentiment. This has further cemented bets over a potential interest rate cut by the US Federal Reserve this September. Following the Labor Department’s release, the odds of a 25 basis points (bps) Fed rate cut soared to 85% from 71% at the central bank’s September meeting. As it stand, the market is betting towards a 100 bps point cut this year.
Bitcoin and Ethereum are still in the red but it is expected that the lowering of interest rate would improve the outlook. Despite the Donald Trump and Kamala Harris debate shunning crypto, the upcoming US election could equally improve the crypto market sentiment, especially if a pro-crypto candidate wins.
The post Bitcoin and Ethereum Whales Activity Sparks Concern; Crypto Bear Market Imminent? appeared first on CoinGape.
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