Recent analytical data reveals interesting trends in the Bitcoin market, noting the decline in the number of active addresses and the increase in trading volumes. This raises questions about the standing of large and small holders of the cryptocurrency.
Decline in Bitcoin Active Addresses
Currently, the number of active Bitcoin addresses has fallen to 692,000, which is 2.2% below the statistical threshold. Meanwhile, transfer volumes have surged by 7.8%, reaching $10.3 billion, largely driven by market whales. Transaction fees decreased by 17%, signaling a disengagement from small holders.
Whale Strategies in the Market
Amid the decline in activity, whales appear to be gearing up for new strategies. Despite the apparent calm, many large players are adjusting their positions on the market. Changes in market structure, such as reduced ETF volumes and declining trader sentiments, also play a significant role. As the Glassnode report indicates, 'the market structure shifted from euphoria to fragility.'
Outlook for Bitcoin and Marketing Caution
A drop in the NUPL indicator to 5% and a $1 billion outflow from crypto ETFs signal caution among institutional investors. This may also suggest that the upcoming movements in the market will be driven by accumulation strategies employed by large Bitcoin holders awaiting their moment. According to Glassnode, 'activity weakened, profits faded, and caution grew among traders and institutions.'
The current situation in the Bitcoin market underscores the growing divide between large and small holders, which could have significant implications for future trends of the cryptocurrency.
