Well-known cryptocurrency analyst Benjamin Cowen, in his new analysis video, examines the movements of major players in the Bitcoin market. Assessing the market, Cowen interprets the current situation and historical trends in light of blockchain data.
Cowen noted that metrics tracking whale activity work differently than traditional risk indicators. He stated that sudden spikes in whale activity should not be interpreted as direct signals of a bull or bear market, noting that these movements are often centered around local peaks or troughs following sharp price fluctuations.
Analyzing current blockchain data, Cowen noted a significant lull in large transactions by major players. He stated that the transaction volumes of whales are at very low levels, reminiscent of the recession period in August 2018. According to the analyst, while the stock market activity indicator has historically tended to rise during market lows (e.g., the sharp declines of 2015, 2018, and 2020), the whale transaction metric peaked during major bull markets, such as 2017 and 2021.
Another important detail noted in the analysis is the change in asset distribution among Bitcoin wallets. Cowen stated that the share of wallets containing between 1,000 and 10,000 $BTC in the total volume has decreased from approximately 30% to 20%, while the share of wallets containing between 100 and 1,000 $BTC has increased from 20% to 25-26%. This indicates a significant redistribution process among large Bitcoin holders in the leading cryptocurrency.
Benjamin Cowen stated that blockchain activity could pick up again soon, and that the activity of major players should be closely monitored to understand whether new market volatility has come to an end.
*This is not investment advice.
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