Whale activity around leading assets skyrocketed, showing mixed signals

On October 21, the volume of large transactions for several leading cryptocurrencies saw a significant increase, as the market experienced a notable correction.

Bitcoin (BTC) led the chart, recording a massive $43.63 billion in large transaction volume, according to data from IntoTheBlock. Despite this uptick in large transactions, Bitcoin’s price saw a 2.2% decline, trading at $67,500 at the time of writing.

This surge in large transactions indicates heightened activity among large holders or institutional investors, which often occurs during periods of market volatility or price corrections.

Despite the recent price correction in the crypto market, several key metrics indicate a complex picture of investor sentiment and activity.

Bitcoin (BTC) long-term holders, those holding the asset for over a year, increased their balance by 0.05%, pushing their collective holdings to $856.23 billion, even amidst the 2.2% price drop. This suggests that long-term investors remain confident and are accumulating during the market pullback.

Toncoin (TON) saw a dramatic 93% surge in whale transactions, reaching $8.21 billion. Given TON’s $13 billion market capitalization, such high whale activity could indicate panic or uncertainty, particularly among larger investors looking to reposition their portfolios.

Similarly, Cardano (ADA) whale transactions jumped by 28%, totaling $7.23 billion, and Wrapped Ether (WETH) saw a remarkable 117% rally in whale activity, reaching $6.16 billion. Both ADA and WETH holders appear to be reacting to market uncertainty, as evidenced by the spike in large transactions.

Ethereum (ETH) also saw a 100% increase in whale transactions, with a total volume of $6 billion. Like Bitcoin, Ethereum’s long-term holders increased their balances slightly, with ETH’s long-term holder balance now at $288 billion, reflecting a more cautious but steady accumulation.

Additionally, stablecoin whale activity has surged, with USDC and DAI seeing notable exchange outflows. This suggests that whales are stepping back from the market and perhaps waiting for more favorable buying conditions.

The broader market saw a 3.1% decline in the past 24 hours, with the global cryptocurrency market cap currently at $2.44 trillion. However, daily trading volume increased significantly from $90 billion to $118 billion, suggesting that while the market is correcting, traders remain active.

Overall, the recent market-wide selloff could be seen as a natural correction after the momentum driven by the “Uptober” trend and speculative trading. The uptick in whale transactions, especially in stablecoins, points to caution among larger investors, with many likely waiting for a better entry point.