Bitcoin whales have reduced their transaction activity in the past two days, just before the price of Bitcoin dropped below $63,000. According to data from Santiment, there were 9,923 whale transactions (exceeding $100,000) in the two days leading up to June 23, which is a 42% decrease compared to the 17,091 transactions recorded in the previous two days. The decline in whale activity coincided with Bitcoin’s price falling from $64,685 to $63,422, and it has further declined to $62,531 at the time of writing, according to CoinMarketCap data.
In addition to the decrease in transaction activity, whale traders who bet on the future price of Bitcoin have also taken a step back, indicating a bearish change in market sentiment. Ki Young Ju, the CEO of CryptoQuant, stated that whale traders on derivatives exchanges are in a “risk-off mode.” This is supported by the inter-exchange flow pulse (IFP) turning “red,” which signifies an increase in traders withdrawing their Bitcoin from derivatives exchanges.
The Crypto Fear and Greed Index, which measures crypto market sentiment, has dropped to a “Neutral” score of 51, the lowest it has been in 51 days since Bitcoin fell below the critical $60,000 level to $59,122. Furthermore, spot Bitcoin exchange-traded funds (ETF) have seen a series of outflows over the past six trading days, according to Farside data, with the largest outflow of $226.2 million occurring on June 13.
Despite these bearish indicators, some analysts are optimistic about Bitcoin’s price. Glassnode lead analyst James Check, also known as “Checkmatey,” believes that the Bitcoin Sell-side Risk Ratio suggests that the market is ready for a move. He stated that all the profits and losses that were expected to be taken have already occurred, and Bitcoin now needs to establish a new price range to evoke fear, greed, panic, or euphoria.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment or trading decisions.