- Bitcoin-whale transactions are seeing a significant drop, impacting BTC circulation and FX balances.
- Regular transactions surge to an all-time high even as BTC remains below the neutral line on the RSI.
In the midst of Bitcoin’s roller coaster ride [BTC] Due to the price fluctuations, the activities of major players in the cryptocurrency market, so-called whales, have noticeably decreased in recent months. This drop in whale transactions has impacted the overall circulation of BTC.
Still, regular transactions showed signs of resilience and continued to gain momentum.
Read Bitcoins [BTC] Price prediction 2023-24
Bitcoin whales are slowing down transactions
Glassnode data showed a significant slowdown in bitcoin whale transactions over the past few months. Notably, BTC inflow from whales to exchanges this year has been remarkably low, with a current transfer volume of $187 million. Compared to the peak inflow value of $1.82 billion, there is a remarkable drop of 85.4%, showing the severity of the decline in whale transactions.
Additionally, this drop has resulted in a decrease in the overall BTC balance on exchanges. According to the BTC exchange balance metric, the current balance was at its all-time low. About 2.3 million BTCs were held on all exchanges. Additionally, this resulted in the lowest percentage balance on exchanges based on the current exchange balance metric, which was around 11.8%.
Source: Glassnode
Analysis of Bitcoin flows across exchanges
Despite the drop in whale transactions and the drop in BTC balances on exchanges, Bitcoin has maintained a healthy flow of activity on various exchanges. The flow metric, which monitors daily BTC deposits and withdrawals from exchanges, showed notable inflows and outflows.
Source: Glassnode
However, at the time of this writing, there were more withdrawals than deposits on various exchanges. Total inflow surpassed 22,000 BTC at the time of this writing, while outflow surpassed 31,000 BTC. Overall, there was a relatively balanced volume between inflows and outflows on each day, resulting in a lower aggregate net inflow volume.
Transaction reaches historic high
Despite the bitcoin whales’ apparent reluctance to actively participate in the current market, transactions are thriving. At the time of this writing, bitcoin transactions are at an all-time high. Transaction count exceeded 512,000, a remarkable 120% increase.
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This unprecedented level showed that retail transactions were gaining momentum, driving up the overall transaction count, even without significant contributions from whales.
Source: Glassnode
At the time of this writing, Bitcoin was trading at around $26,480, posting a minor daily loss of less than 1%. Additionally, it remained positioned below the neutral line of the Relative Strength Index, indicating a bearish market trend.
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