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Bitcoin, Ethereum and Tether witness drop in whale transactions, hit lowest point in a year

  • Bitcoin, Ethereum and Tether transaction activity by whales, worth $100,000 and more has plunged over the past year. 
  • The drop in high volume transactions may not be indicative of a bear market, it reflects that whales are waiting and watching for developments. 
  • Analysts believe Bitcoin and Ethereum prices are showing a bearish continuation – at risk of dropping lower. 

Bitcoin price could slide to $30,000 as transaction activity on the blockchain network drops. Whale transactions on Ethereum and Tether have witnessed a drop over the past year as large wallet investors wait out geopolitical crises. 

Bitcoin price could plummet as whales watch and wait

Bitcoin, Ethereum and Tether suffer a decline in large wallet transactions since 2021. Based on data from crypto intelligence platform Santiment, transactions worth $100,000 and over have declined consistently, hitting their lowest point in a year. 

Large value transactions in Bitcoin, Ethereum and Tether

Large value transactions in Bitcoin, Ethereum and Tether

Though analysts argue that a low volume of large value transactions does not in itself indicate the onset of a bear market, declining interest from whales in Bitcoin, Ethereum and Tether indicates that large players are awaiting further developments in the Russo-Ukrainian war. 

Proponents believe that there is a risk Bitcoin price could plummet to a downside target of $30,000. FXStreet analysts noted that the Bitcoin price chart has largely remained unchanged. Bitcoin is trading sideways, stuck in a tight range. Analysts are bearish on Bitcoin price and note that structurally the asset is primed for a drop to $30,000. 

Analysts observed that a similar set up in the Bitcoin price chart was followed by a crash in June 2018. This implies that analysts expect a crash in Bitcoin price again. Analysts revealed there is a combination of powerful time cycles that culminate this week, that further indicates a bearish outlook on Bitcoin price. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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