🌎 Bitcoin Hits Local High at $60,100 Amid Decreasing Whale Activity

Bitcoin briefly touched a local high of $60,100 earlier today before settling around $58,894 at last check on Sunday. The leading cryptocurrency has been up for three consecutive days but remains in a consolidation phase.

Bitcoin daily trading volume decreased by 42%, currently hovering around $14.7 billion. When an asset’s trading volume declines, it often signals a cool-down and lower price volatility.

According to data, Bitcoin’s five-year dormant circulation is currently at 104 BTC, one of the lowest levels seen this year. This metric rose to 16,592 BTC on July 23 when Bitcoin’s price was around $66,000.

The asset’s one-year dormant circulation plunged from 6,040 BTC on August 15 to 1,412 BTC at the reporting time. The declining dormant circulation often hints at long-term holders taking profits, typically increasing during high price points. At this stage, long-term Bitcoin addresses have either taken profits or gone dormant again.

Data indicates that the number of whale transactions, consisting of at least $100,000 worth of BTC, has been consistently decreasing over the past three days — dropping from 9,295 on August 15 to 5,309 unique transactions at the reporting time. Declining whale activity often reduces an asset’s price volatility as token holders anticipate a lower chance of whale price manipulations.

Recent reports show that spot Bitcoin exchange-traded funds (ETFs) in the U.S. closed the week with over $36 million in net inflows. This was one of the main reasons behind the bullish sentiment around Bitcoin, helping it recover the $59,000 mark.