The number of large transactions on the Bitcoin network declined after the FTX debacle. The status of the network of miners has changed and the difficulty has decreased. The decline in the number of large transactions on the Bitcoin network has raised questions about the future of the royal coin.
According to data provided by glassnode, the number of large transactions, which made the majority of total transactions in the BTC network, declined after the FTX debacle. In November, sellers over $10 million received the largest share of total contracts, accounting for 42.8% of total contracts.
However, this has stopped, and these large transactions account for only 19% of total transactions in the system, at the time of reporting.
Addresses, Large and Small
A possible explanation for this decline is the practice of large addresses, which may contribute to the decline of large transactions. According to data provided by Santiment, the number of addresses holding 1,000 to 10,000 BTC has decreased over the past month. However, the interest of traders in bitcoin continued to grow as addresses with 1 and 1000 bitcoins increased significantly at the same time.
This change in the distribution of Bitcoin may be a sign of increased interest from retail investors, who can hold small amounts of cryptocurrency.
The Bitcoin Miners are on Vacation
The reduction in the number of large businesses did not, however, have much effect on the condition of the miners.
The evolution of the mining network has been observed to improve after a long period of time. A positive net position of miners suggested that the total number of Bitcoins sold by miers is less than the amount held. This data can be a good sign for the long term of BTC, as it shows that the miners are more confident in the future of the cryptocurrency.
This decrease in difficulty corresponds to an increase in the miners’ income. Although miners started to trust BTC, consumers did not share the same opinion.
Traders’ opinion towards Bitcoin seems to be negative, and at the time of the report, as the short position in BTC increased significantly. According to coinglass, short positions account for 50.87% of the total positions for BTC. This may be a sign that consumers are pessimistic about the near future of the cryptocurrency queen.
It remains uncertain whether the stoppage in large transactions and negative sentiment among traders will affect the value of Bitcoin. Well, at the time of writing, Bitcoin is trading at $17,232.21, increasing the price by 1.70% in the last 24 hours.