According to recent on-chain revelations, the Bitcoin network has been experiencing a steady decline in high-value transactions over the past few weeks. This lackluster activity was reflected in the price of the top cryptocurrency, which struggled to break out of consolidation throughout the month of April.
Last week, the price of Bitcoin struggled to stay above $67,000 despite several gains. BTC prices have since slumped, falling more than 2% over the past seven days, according to data from CoinGecko.
Interestingly, recent on-chain data suggests that this disappointing price performance from the market leader may persist unless a shift is made, especially in terms of network activity.
Could whale activity push BTC price above $73,000?
Renowned cryptocurrency analyst Ali Martinez Go to X Platform To reveal that Bitcoin whale activity has been steadily decreasing over the past six weeks. This disclosure is based on Santiment’s Whale Transaction Count metric, which tracks the number of BTC transactions above $100,000 and $1 million.
A whale is an entity or individual that owns a significant amount of a specific cryptocurrency (in this case Bitcoin). As such, they have significant influence over market dynamics due to speculation and their ability to execute large trades that can potentially cause price fluctuations.
In his post, Martinez highlighted that Bitcoin whale activity has decreased noticeably since March 14th. On the same day, the leading cryptocurrency hit an all-time high. $73,737. This decline in activity is consistent with the recent underperformance of the Bitcoin price.
However, the cryptocurrency analyst noted that an increase in high-value transactions could give BTC prices a boost. This is based on the reasoning that a surge in network activity could lead to higher demand for Bitcoin, causing its price to rise.
As you can see in the chart below, the peak in the number of whale transactions is associated with a new record high price for BTC.
Source: Ali_charts/X
Active Bitcoin Wallet on the Rise: Santiment
Interesting on-chain data has come to light that could point to growing demand for Bitcoin and an optimistic future for the Bitcoin price. According to Santiment, the number of active Bitcoin wallets is growing rapidly despite volatile market conditions.
📊 Non-empty total amount #Bitcoin Despite uneven prices, wallets are growing rapidly. #altcoin Wallets for the following assets: #Dogecoin It has flattened out after a huge rise earlier this year. #Cardano It is one of the few networks where active wallets disappear. https://t.co/itg9qMes7c pic.twitter.com/yrOlEQw3jy
— Santiment (@santimentfeed) April 27, 2024
Active Bitcoin wallets represent the total number of unique addresses holding BTC. Santiment data shows that the number of these “non-empty BTC wallets” has increased by more than 2.5% over the past three months.
As of this writing, Bitcoin is trading at just over $64,000, reflecting a 1.6% price increase over the past day.
BTC price breaks above $64,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Unsplash, chart from TradingView
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Source: NewsBTC.com