• Bitcoin whale transactions have seen a major drop in recent times, showing a lack of institutional interest in the crypto.
• On-chain data provider Santiment reports that the lack of whale interest is one of the major reasons behind Bitcoin’s ranging prices.
• The number of transactions on the BTC network with a value of $100,000 has touched a new yearly low of just 8040 transactions, showing a decline in institutional participation.
The world’s largest cryptocurrency Bitcoin (BTC) has entered into a strong consolidation recently, holding up over $16,600 levels and facing strong resistance moving past $17,000. Despite the current market conditions, some altcoins are making strong moves. To understand why Bitcoin is struggling to surge past $17,000, on-chain data provider Santiment has recently reported that the lack of whale interest is one of the major reasons behind Bitcoin’s ranging prices.
The data provider noted: „Bitcoin’s ranging prices have a lot to do with declining whale interest. This chart illustrates how closely $BTC and $1M+ valued whale transactions correlate. If prices continue sliding and a spike occurs, this would be a historically #bullish signal“. This implies that the whales contributing transactions worth $1 million are missing in action, leading to a lack of institutional interest in Bitcoin.
The number of transactions on the BTC network with a value of $100,000 has also been on a downward trend, touching a new yearly low of just 8040 transactions. This further shows that institutional participation in the cryptocurrency has been on a decline. Many market analysts believe that the lack of institutional participation could be due to uncertain macro conditions.
If the U.S. were to fall into recession next year in 2023, this could lead to a correction in BTC prices. It is essential that Bitcoin whales make significant transactions to increase the institutional participation and help the crypto surge past the $17,000 mark. If Bitcoin does manage to move past the resistance, it could lead to a further surge in the price of the world’s largest cryptocurrency and create a bullish signal for the broader crypto market.