In the latest revelations from on-chain data, it appears that the Bitcoin network has been facing a noticeable downturn in high-value transactions. This period of lethargy has been echoed by Bitcoin’s rollercoaster ride throughout April, with the cryptocurrency’s price failing to break through the restrictive chains of consolidation.
Over the last week, despite multiple attempts, Bitcoin’s price wobbled and failed to maintain above the precarious $67,000 level. Data provided by CoinGecko tells a dramatic tale of the tumbling crypto-giant, charting a drop of more than 2% within a span of seven days.
This disappointing performance of the cryptocurrency king, stimulated by the latest on-chain data, raises questions about its prospects. The murky future will persist unless there is a significant turnaround, particularly in network activities, suggesting a turbulent road ahead for the market leader.
Following the crypto saga closely, renouncing analyst Ali Martinez offers some significant insights. On platform X, he reveals that Bitcoin whale activity has experienced a steady decline over the past six weeks. His findings rely heavily on Santiment’s Whale Transaction Count metric, a tool that effectively tracks Bitcoin transactions that exceed $100,000 and $1 million.
The term “Whales” in the crypto universe refers to entities or individuals who possess a large number of Bitcoins. Owing to their considerable holdings, these Whales have the heft to navigate market dynamics, influencing them through large transactions, stimulating speculation and price shifts.
Martinez observes a distinct falling trend in the activities of Bitcoin Whales since March 14. Notably, this was the day the premier cryptocurrency pierced through its previous records to reach an all-time high of $73,737. This plunge in activity correlates with Bitcoin’s recent downturn in performance.
Martinez suggests, however, that the stagnating waters of Bitcoin could gain momentum should transactions regain their strength. The argument being that a rise in network activity might indicate high demand, thereby driving prices up.
Intriguingly, another piece of on-chain data casts a hopeful light on Bitcoin’s future. According to Santiment, the number of active Bitcoin wallets are on the rise, even amidst the edgy state of the market.
These wallets, defined by the total number of unique BTC addresses, provide a measure of active demand. Information from Santiment shows that these active Bitcoin wallets have seen an increase of approximately 2.5% in the last three months.
As the tale unfolds, at the time of writing, Bitcoin teetered just above $64,000, marking a slight uptick of 1.6% over the previous day. This volatility invites speculation and piques interest in the eventful journey that lies ahead for the prime cryptocurrency.
