BTC whales take a backseat but investors can stay calm because…

• Bitcoin whale transactions experience a significant decline, impacting BTC circulation and exchange balances.
• Regular transactions surge to an all-time high, despite BTC remaining below the neutral line on RSI.

Amidst the rollercoaster ride of Bitcoin [BTC] price fluctuations, activities of major players in the cryptocurrency market, known as whales, have noticeably waned in recent months. This decline in whale transactions has impacted the overall circulation of BTC.

However, despite this, regular transactions have shown signs of resilience and continued gaining momentum.

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Bitcoin whales slow down transactions

Glassnode’s data revealed a significant slowdown in Bitcoin whale transactions over the past few months. Notably, the inflow of BTC to exchanges from whales has been remarkably quiet this year, with a current transfer volume of $187 million. Compared to the peak inflow value of $1.82 billion, there has been a striking decline of 85.4%, highlighting the severity of the reduction in whale transactions. 

Furthermore, this decline has consequently resulted in a decrease in the overall BTC balance on exchanges. According to the BTC exchange balance metric, the current balance was at its lowest point. It had approximately 2.3 million BTCs held across all exchanges. Furthermore, this translated to the lowest percentage balance on exchanges based on the current exchange balance metric, which stood at around 11.8%.

Source: Glassnode

Analyzing Bitcoin flows across exchanges

Despite the decrease in whale transactions and the decline in BTC balance on exchanges, Bitcoin has maintained a healthy flow of activity across different exchanges. The flow metric, which monitors BTC’s daily deposits and withdrawals on exchanges, showed notable inflows and outflows. 

Source: Glassnode

However, as of this writing, there had been more withdrawals than deposits observed on various exchanges. The total inflow as of this writing exceeded 22,000 BTC, while the outflow surpassed 31,000 BTC. Overall, there was a relatively balanced volume between inflows and outflows each day, resulting in a smaller aggregate netflow volume.

Transaction hits historic high

Despite the apparent reluctance of Bitcoin whales to actively engage in the current market, transactions have been flourishing. As of this writing, Bitcoin transactions reached an all-time high. The transaction count had surpassed 512,000, marking a remarkable 120% increase.

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This unprecedented level demonstrated that retail transactions were gaining momentum and driving up the overall transaction count, even without substantial contributions from whales.

Source: Glassnode

As of this writing, Bitcoin traded at approximately $26,480, experiencing a minor daily loss of less than 1%. Furthermore, it remained positioned below the neutral line on the Relative Strength Index, signaling a bearish trend in the market.