Whale transfers of BTC, ETH, and USDT have declined during the last 12 months. Last week, cryptocurrency transactions priced at $100,000 or more hit their lowest level since February 2021.
On Wednesday, crypto assets saw a little comeback as Bitcoin reclaimed the $40,000 price level, its highest level since 10 March.
However, the world’s most valuable digital asset is still over 40% below its all-time peak established in November 2021.
Q4 2021 Volumes Explained
The downward pressure on cryptocurrency prices has resulted in a decrease in whale transfers.
According to Santiment, an on-chain analytics platform, whale transactions in BTC, ETH, and USDT have hit a one-year low.
“Whale transactions in Bitcoin, Ethereum, and Tether have plummeted to the lowest level in a year, with the lowest total value of $100k+ transactions in a year.
This is not inherently negative, but rather indicative of huge players anticipating additional developments in the conflict and inflation,” Santiment observed.
While the whale community’s total transaction volume has decreased over the previous year, outflows from digital exchanges have increased significantly.
Nearly 30,000 Bitcoin were transferred from Coinbase to unknown cryptocurrency wallets last week.
As a consequence, Coinbase’s Bitcoin balance has decreased dramatically. In the previous two years, the BTC balance on Coinbase has declined by more than 36 percent.
Since November 2021, the cryptocurrency market’s market capitalization has decreased by approximately $1 trillion.
Leading digital assets have failed to recoup their losses over the previous three months.
Marcus Sotiriou, an analyst at GlobalBlock, commented on the current movement in the crypto market and BTC’s price, saying:
“Bitcoin investors are fearful of the first-rate rise since it is the first day on which global markets’ liquidity may begin to dwindle.
Yesterday, the Economic and Monetary Affairs Committee of the European Parliament (ECON) voted on a new crypto framework dubbed Markets in Crypto Assets (MiCA).
A last-minute amendment to the law included a prohibition on prohibiting proof-of-work, which would damage Bitcoin. Fortunately, the committee voted against the prohibition, in favor of an alternate option.”
LegacyFX’s Crypto Sphere
CFDs are a subset of cryptocurrency trading that various investors are investigating. CFD is an acronym for Contract for Difference.
This popular derivative trading strategy allows cryptocurrency traders to bet on the shifting values of financial market investment choices.
Concerning digital currency, LegacyFX allows traders to speculate on the price of cryptocurrencies and earn a profit without really holding the asset. Instead, one is gambling on whether the price of an asset will grow or decline.
The difference between the price of one’s investment and the price after appreciation can determine profit margin.
Trading on CFDs does not restrict traders to a single asset class, as they are allowed to invest in whatever asset they like.
LegacyFX offers several popular tradable cryptocurrencies, such as:
- LTC/USD: Litecoin in comparison to the US dollar.
- BCH/USD: Bitcoin Cash vs. the US dollar.
- XRP/USD: Ripple in comparison to the US dollar.
- BTC/USD: Bitcoin exchange rate versus the US dollar.
- BTC/ETH: Bitcoin vs. Ethereum.
- ETH/USD: Ethereum versus the US dollar.
Trading cryptocurrency CFDs with LegacyFX is relatively straightforward, via the four following processes:
- Select an Online Trading Platform – Through LegacyFX’s site, one may invest in and trade any cryptocurrency, either long or short. The platform’s numerous features make trading on any asset simpler.
- Create and Fund a Trading Account – LegacyFX’s trading accounts provides the ability to trade on an organized platform with additional access to various market tools and guidance.
- Discover How CFDs on Cryptocurrencies Operate – Through LegacyFX’s various educational resources, traders can better understand how cryptocurrencies operate within financial markets.
- Create a Workable Trading Strategy – With the help of our experts, one can formulate a trading strategy according to one’s goals, experience, and preferences.
Overall, LegacyFX has established itself as a trustworthy trading platform for traders from all walks of life.
It provides such traders with a trading channel that allows them to trade and learn about the world of financial investing.