Bitcoin Network Sees Drop in Large Transactions: What Does It Mean?

Highlights:

• Bitcoin network records a significant drop in large transaction volume.
• The decline in the number of transactions was attributed to a reduction in whale activities.
• Bitcoin price has dropped, aligning with the drop in the number of large transactions.

According to the popular crypto market chartist and analyst Ali Martinez, large volume transactions on the Bitcoin (BTC) network have dropped drastically over a month interval. Relaying the new findings on his verified X handle, the market expert mentioned that the decline count could mean a reduction in whale investors’ activities.

Martinez drew his findings from transaction volume statistics between December 5, 2024, and January 11, 2025. Per the graph, the number of significant transactions on the BTC blockchain dropped from 33,450 in December to 16,180 in January. He quantified the decrement as a 51.64% drop.

Meanwhile, as of December, when the large transaction count was high, BTC was worth approximately $97,885. However, following the decrement, Bitcoin’s price dropped to about $94,406 in January.

The number of large transactions on the #Bitcoin $BTC network has decreased by 51.64% over the past month, dropping from 33,450 to 16,180. This could indicate a significant reduction in whale activity. pic.twitter.com/W9EgSHal03

— Ali (@ali_charts) January 13, 2025

Network Activities Statistics Dropped Considerable to Align with Transactions Count

It is worth noting that Martinez pointed out a similar trend in one of his older tweets. The chart revealed that the network activity reached a peak level in November after Donald Trump’s emergence as the United States president-elect. For context, the number of active addresses then was over 960K, underscoring a significant drop when compared to current standings.

#Bitcoin $BTC network activity has fallen to its lowest level since November 2024, with just 667,100 active addresses. pic.twitter.com/e0r9QXLF42

— Ali (@ali_charts) January 13, 2025

In the crypto space, the above findings can elicit price drop concerns among enthusiasts. The price decline fears are because whale investors are showing reduced interest in BTC, which could force selloffs among retailers. Should such happen, there are high chances that Bitcoin could suffer more pronounced price drops.

Bitcoin Price Nears $90,000 as Negative Trends Persist

At the time of writing, Bitcoin is priced at approximately $93,400, reflecting a 0.9% decline in the past 24 hours. Within the same timeframe, BTC’s minimum and maximum prices fluctuated between $93,330.90 and $95,903.94, highlighting the coin’s concerning declines.

As a result of the price drops, BTC’s market capitalization decreased to $1.85 trillion. Despite the unimpressive price pattern, Bitcoin’s 24-hour trading volume is up by 73.7% and has a $30.1 billion valuation.

While market participants might attribute BTC’s worrying decline to the generalized market slumps, Ali Martinez has come up with different findings. According to the chartist, the crypto market is battling a considerable decrement in cash inflows.

In one of his several tweets, Martinez said that the past month witnessed a 56.70% drop in crypto market cash inflows. In his words, the market expert stated: “Capital inflows into the cryptocurrency market have declined by 56.70% over the past month, dropping from $134 billion to $58 billion.” Still, in the same tweet, Martinez attributed the trend to a significant decline in investor activity.

Capital inflows into the cryptocurrency market have declined by 56.70% over the past month, dropping from $134 billion to $58 billion. This points to a significant reduction in investment activity. pic.twitter.com/B0MmGs3t96

— Ali (@ali_charts) January 13, 2025

It is left to see how events unfold with Donald Trump’s inauguration expected to happen in about seven days from now. The incoming administration has inspired optimism among market observers, which was evident in the crypto market rally after the U.S. elections.

Notedly, Bitcoin was one of the biggest winners during the post-election period. It broke above $100,000 and was on the verge of reaching $110,000 before it started retracing. Therefore, it shouldn’t be surprising that market participants are hopeful that the Trump-led government will catalyze BTC’s unprecedented rally.

🇺🇸 DONALD TRUMP WILL BECOME
PRESIDENT IN 7 DAYS AFTER TAKING
AN OATH ON 20TH JAN.

YOU KNOW WHERE BITCOIN WILL
HEAD NEXT. pic.twitter.com/n844C1VaTN

— Ash Crypto (@Ashcryptoreal) January 13, 2025