Bitcoin Whales' Activity Stalls, Distribution Shifts Amid Market Volatility

Renowned cryptocurrency analyst Benjamin Cowen recently examined the movements of large whales in the Bitcoin market. In his analysis video, Cowen noted that metrics tracking whale activity work differently than traditional risk indicators.

Cowen stated that sudden surges in whale activity shouldn't be interpreted as direct bull or bear signals, and these movements are often concentrated around local peaks or troughs following sharp price fluctuations.

Currently, on-chain data shows a significant lull in large-scale whale transactions. According to Cowen, high-volume whale transfers were at very low levels, reminiscent of the recession period in August 2018.

The asset distribution in Bitcoin wallets has also changed, with the share of wallets holding between 1,000 and 10,000 BTC decreasing from approximately 30% to 20%, while the share of wallets holding between 100 and 1,000 BTC increased from 20% to 25-26%. This indicates a significant redistribution process among whale layers.

Cowen believes that on-chain activity could increase again in the coming period, and that whale activity should be closely monitored to understand whether the new volatility in the market has come to an end.