Bitcoin Large Transactions Explode, Whales Buying The Dip?

Keshav Verma

2 years ago

3 mins read

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On-chain data shows Bitcoin whale transactions have exploded recently, suggesting that these investors may be looking to buy the dip in the price.

Bitcoin Whale Transaction Count Has Shot Up In Recent Days

According to data from the on-chain analytics firm Santiment, whale activity is now at its highest level in around three months. The relevant indicator here is the “whale transaction count,” which measures the total number of Bitcoin transfers taking place on the network that is at least $1 million in value.

When the value of this metric is high, it means whales are making a large number of transactions right now. Such a trend shows that these humongous holders have an active interest in trading the asset currently.

Because these transactions involve the movement of a significant amount of capital ($1 million or more), they can sometimes create noticeable ripples in the market.

As such, whenever the whale transaction count has elevated values, the chances of the price of the asset displaying more volatility go up. This is why activity from this cohort is usually something to watch for.

Now, here is a chart that shows how these whales are behaving in the current Bitcoin environment:

Looks like the value of the metric has been raised in recent days | Source: Santiment on Twitter

As shown in the above graph, the Bitcoin whale transaction count has surged recently and has hit some pretty high values. The current levels of the indicator are in fact the highest observed since November 2022, around three months ago.

This latest elevation in the activity of the whales has come following a plunge in the value of the coin below the $22,000 level. The timing of the transfers may imply that these holders are looking to buy the coin while the price is seeing this dip.

However, something to keep in mind is that both buying and selling transactions contribute to the metric’s value, which means that the current spike may very well be a sign of further distribution from this cohort instead.

Naturally, if the whales made these transactions in preparation for selling, then Bitcoin would feel a bearish impact from this and the decline could extend further.

But, on the other hand, if these large investors are indeed accumulating here, then BTC might observe a bullish impulse instead and recover the losses piled up in the past few days or so.

Either way, the Bitcoin whale transaction count being at such high values likely means that volatility may be imminent for the cryptocurrency. It only remains to be seen in which direction the transfers might eventually end up taking the price of the asset.

BTC Price

At the time of writing, Bitcoin is trading around $21,600, down 5% in the last week.

The value of the asset seems to have been moving sideways since the dip | Source: BTCUSD on TradingView

Featured image from Todd Cravens on Unsplash.com, charts from TradingView.com, Santiment.net

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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