Whales Cut Bitcoin Spending Could Prices Go Up?

According to current on-chain data from Santiment, the Bitcoin market is currently only entering a new market phase. This indicator shows that the percentage of Bitcoin spending by millionaires, also known as “whales,” has dropped significantly.

Increased volatility and recent price declines have increased the share of market spending. After a slight market recovery, the issuance rate of the large Bitcoin wallets (whales) has normalized again.

The previous accumulation phase brought huge returns to the leading cryptocurrency. The price rose more than 60% from July to September, and after periods of accumulation, the issue rates are often low for both small and large Bitcoin wallets. Whenever spending activity diminishes, holders keep coins in personal wallets rather than moving them across exchanges.

Bitcoin supply distribution | The source: mood

Whenever participants hold coins in their wallets, there are always more profit-taking opportunities in the market as volatility increases. Similar to previous periods of accumulation, whales have stopped transferring funds and exchanging purses.

At the time of writing, Bitcoin is trading at $ 41,257 after the Central Bank of China declared that all crypto-related transactions are considered illegal activities and those transactions are related to money laundering.

Meanwhile, Lightning Network, a Layer 2 payment solution introduced on the Bitcoin chain, has just posted an all-time high in the number of open payment channels, 72,380. That’s 226% more than the stable baseline of 32,000 channels added in 2019 and 2020.

#Bitcoin Lightning Network now at an all-time high of over 72,380 open payment channels.

This is a 226% increase from the stable baseline of ~ 32,000 channels set up over the 2019-20 period.

Live charts: https://t.co/7orl4psgJF pic.twitter.com/qufrB1gEvc

– Glass node (@glassnode) September 24, 2021

“Lightning Network is now at an all-time high with over 72,380 payment channels open. This is a 226% increase from a stable base of ~ 32,000 channels established over the course of 2019.20th20 “.

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Minh Anh

According to AZCoin News

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