According to Santiment’s most recent on-chain data, the current Bitcoin market has just entered a new market phase. According to the indicator, the Bitcoin spending rates of millionaires, or “whales,” have significantly decreased.
Increased volatility and the recent market drop have resulted in higher market spending rates. Following a brief market recovery, large Bitcoin wallets, or “whales,” have returned to normal spending rates.
The previous accumulation period was followed by a significant increase in the value of Bitcoin. From July to September, the price of the first cryptocurrency increased by more than 60%. On both small and large Bitcoin wallets, accumulation periods are usually followed by low spending rates. When spending activity falls, holders keep their funds in their personal wallets rather than transferring them to various crypto exchanges.
When market participants keep funds in cryptocurrency wallets, there are more chances for those funds to be realized on the market as volatility rises. Similarly to previous periods of accumulation, whales have ceased moving funds amongst themselves and have exchanged wallets.