Ethereum and Bitcoin Whale Transfers Substantially Declined by 33.6% and 72.5%

Santiment mentioned that the whale transfers in the case of Bitcoin whale transfers have plunged by 33.6% since they peaked. This took place back in March

The latest crypto whale movements have shown a significant decrease.

According to Santiment, a popular on-chain analytics platform, the whale transfers for the top crypto tokens Bitcoin and Ethereum have dropped substantially since mid-August. The analytics provider shared the details of the current market scenario regarding the whales in a recent post on its social media account.

Ethereum and Bitcoin Whale Transfers Substantially Declined by 33.6% and 72.5%

Santiment noted that the whale transfers in the case of Bitcoin have plunged by 33.6% since the peak, which was observed back in March and April. In comparison, Ethereum shows a substantially greater decrease. It has reportedly witnessed a massive 72.5% dip in its whale transactions during the same time frame. The dramatic decline may initially raise concerns.

However, this scenario does not necessarily come across as a bearish signal, Santiment noted. The historical data suggests that the whales tend to remain relatively calm in extreme situations, whether it is a bear or bull market, to carry out their transfers in line with the prevailing market conditions.

Moreover, the dip in the large transactions could indicate that these big holders are waiting for the right moment. As the data reveals, these impactful market participants are known to make significant moves depending on the crowd’s behavior, whether it is a time of excessive greed (a.k.a. FOMO) or a widespread Fear, Uncertainty, or Doubt (FUD). Keeping that in view, crowd sentiment plays a critical role in the market behavior.

Hitting Back $70K May Potentially Ignite a FOMO Wave Across the Market

This trend has been particularly evident since Bitcoin hit its all-time high price level six months ago. According to Santiment, the crowd has been showing strong reactions to mid-sized changes in price, where even comparatively small market movements can ignite emotional responses when it comes to retail investors.

If BTC were to return to its former high of nearly $70,000, the chances are bright for a FOMO wave to sweep the entire market, as noted by the analytics firm. Such an event could drive prices to a higher level as retail investors are rushing to capitalize on the upward momentum.