Jun 24, 2024 at 11:43Bitcoin’s price dipped below $63,000 after a significant reduction in large transactions. Over the past two days, Bitcoin transactions exceeding $100,000 saw a notable decrease, preceding Bitcoin’s price drop.
On June 23, data from Santiment revealed that the total number of Bitcoin whale transactions (over $100,000) fell to 9,923, marking a 42% decrease from the 17,091 transactions recorded in the preceding two days.
This decline in whale activity coincided with Bitcoin’s price falling from $64,685 to $63,422, and further down to $62,531 at the time of publication, according to CoinMarketCap.
Additionally, whale traders on derivative exchanges have shown a bearish shift in sentiment. Ki Young Ju, CEO of CryptoQuant, noted in a June 23 post that whale traders are in “risk-off mode,” as indicated by the inter-exchange flow pulse (IFP) turning “red.” The IFP measures Bitcoin movements between spot and derivative exchanges, reflecting market sentiment.
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The Crypto Fear and Greed Index, which gauges market sentiment, dropped to a “Neutral” score of 51, its lowest in 51 days. This shift followed Bitcoin’s drop below the critical $60,000 level.
Meanwhile, spot Bitcoin exchange-traded funds (ETFs) experienced outflows over the past six trading days, with the largest outflow being $226.2 million on June 13, according to Farside data.
Despite the bearish indicators, some analysts remain optimistic about Bitcoin’s prospects. Glassnode lead analyst James Check, also known as “Checkmatey,” highlighted that the Bitcoin Sell-side Risk Ratio indicates the market may soon shift. He suggested that the market has exhausted its profit-taking and loss-booking, and Bitcoin needs to find a new price range to trigger market emotions like fear, greed, panic, or euphoria.
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