- Bitcoin whales have significantly slowed down their trading activities just before the price dipped below $63,000.
- This behavior was noted by Santiment, which reported a sharp decline in high-value transactions over the past two days.
- “Derivative exchanges are showing a risk-averse mode,” explained Ki Young Ju, CEO of CryptoQuant, highlighting the changing market sentiment.
Bitcoin whales reduce activity as market sentiment shifts, causing Bitcoin to hover below $63,000.
Decline in High-Value Bitcoin Transactions
Bitcoin whales, known for their significant influence on market movements, have reduced their transaction activity. As per Santiment, the number of Bitcoin transactions valued at $100,000 or more plunged to 9,923 on June 23. This represents a 42% drop from the 17,091 transactions recorded two days earlier. The period witnessed Bitcoin’s price falling from $64,685 to $63,422, as tracked by CoinMarketCap.
Whales Adopting a Risk-Averse Strategy
CryptoQuant’s CEO, Ki Young Ju, noted that whales are avoiding large risks in the current market conditions. In his June 23rd post on X, Ju pointed out the bearish trend defining the market sentiment. He referenced the Interexchange-Flow-Pulse (IFP), which has turned red. This indicator tracks Bitcoin movements between spot and derivative exchanges, reflecting a shift in sentiment.
Neutral Sentiment on the Crypto Fear and Greed Index
The Crypto Fear and Greed Index, which measures overall market sentiment, hit 51, indicating a neutral position. This occurred as Bitcoin’s price dropped below the critical $60,000 mark, reaching $59,122. Notably, the index reflects the market’s lowest sentiment in 51 days.
Outflows from Spot Bitcoin ETFs
Data from Farside reveals a series of outflows from spot Bitcoin ETFs over the past six trading days, with the largest single-day outflow of $226.2 million on June 13. Such movements indicate declining confidence among institutional investors during this period.
Glassnode’s Optimistic Outlook
Contrary to the bearish indicators, some analysts remain optimistic about Bitcoin’s future. Glassnode’s lead analyst, James Check, known as “Checkmatey,” highlighted that the Bitcoin Sell-Side Risk Ratio has reached critical levels. In his June 23rd post on X, he emphasized that “It’s time for the market to move” as all potential profits and losses have been realized, indicating a need for Bitcoin to find a new price range to rekindle trading activities.
Conclusion
The recent decline in high-value Bitcoin transactions and outflows from ETFs underscore a cautious stance among major players. As the Crypto Fear and Greed Index remains neutral, market perspectives vary, with some analysts positing optimism based on various indicators. Moving forward, Bitcoin will need to establish new dynamics to potentially spur greater market activity and sentiment shifts.
