Large Crypto Transactions Plummet, Prices Struggle

Crypto assets saw a minor recovery on Wednesday after BTC regained the price level of $40,000, which is its highest level since 10 March. However, the most dominant digital asset is still down by almost 40% from its all-time high in November 2021.

The pressure on crypto prices resulted in a dip in whale transfers. According to Santiment, an on-chain analytics platform, BTC, ETH and USDT whale transactions have reached the lowest level in 1 year.

“Bitcoin, Ethereum & Tether have seen plummeting whale transactions, the lowest amount of combined $100k+ valued transactions in a year. This isn't necessarily bearish, but reflective of large players awaiting further war & inflation developments,” Santiment noted.

While the overall transactions by the whale community have dipped in the last 12 months, outflows from digital exchanges have surged. Last week, nearly 30,000 Bitcoin was moved from Coinbase to unknown crypto wallets. As a result, the Bitcoin balance on Coinbase has dropped significantly. In the last two years, the BTC balance on Coinbase has decreased by more than 36%.

Crypto Prices

Since November 2021, the cryptocurrency market has lost nearly $1 trillion worth of market cap. Leading digital assets have struggled with price recovery in the last 3 months.

Commenting on the recent development in the crypto market and BTC’s price, Marcus Sotiriou, an Analyst at digital asset broker GlobalBlock, said: “Bitcoin investors are in fear of the first rate-hike, as it is the first day in which liquidity may start to be drained from global markets. Yesterday, the European Parliament’s economic and monetary affairs committee (ECON) voted on a proposed crypto framework called Markets in Crypto Assets (MiCA). A last-minute addition to the bill involved a ban against banning proof-of-work, hence affecting Bitcoin. Fortunately, the committee voted against the ban, as an alternative proposal received support instead.”