Declining whale activity coincides with Bitcoin’s surge to $43k
Bitcoin (BTC) experienced a significant drop to a local low of approximately $40,700 on December 12, after surpassing the $44,000 mark the previous week. However, the leading cryptocurrency has regained momentum and is currently trading at around $42,950, representing a 5.1% increase in the past 24 hours. The market cap of Bitcoin has also seen a surge of $37 billion, reaching over $840 billion.
The price rally of BTC coincides with a broader bullish momentum in the crypto market, following a sharp decline on December 12. CoinGecko data reveals that the global cryptocurrency market capitalization has risen by almost $80 billion in the past 24 hours, currently standing at $1.685 trillion.
Furthermore, Santiment’s market intelligence platform indicates a consistent decline in Bitcoin’s whale activity since December 11. There has been a 6.1% drop in the number of whale transactions involving at least $100,000 worth of BTC, with 10,215 unique daily transactions recorded.
Typically, a decrease in whale activity suggests lower price volatility. Despite the decline, Bitcoin’s open interest (OI) has increased by 4.5% in the past 24 hours, rising from $7.31 billion to $7.63 billion, according to Santiment.
Additionally, Santiment reports that Bitcoin’s Relative Strength Index (RSI) has risen from 67 to 70. An increase in the RSI indicator indicates the possibility of a price increase, while a decrease suggests the opposite.
In summary, Bitcoin has experienced a recovery in its price and market cap following a recent drop. The broader crypto market has also seen a bullish trend, and Bitcoin’s whale activity has decreased, contributing to lower price volatility. The increase in Bitcoin’s open interest and RSI indicator suggests positive momentum for the asset.
