Bitcoin whales have significantly reduced their transaction activity in the past two days, just before the price of Bitcoin dropped below $63,000. Data from Santiment reveals that there were 9,923 whale transactions (exceeding $100,000) in the previous two days, which is a 42% decrease compared to the 17,091 transactions recorded in the two days prior. CoinMarketCap data shows that Bitcoin’s price fell from $64,685 to $63,422 and has continued to decline to $62,531 at the time of publication.
In addition to the decrease in transaction activity, whale traders who bet on the future price of Bitcoin have also taken a step back. CryptoQuant CEO Ki Young Ju noted that these traders are currently in “risk-off mode,” indicating a bearish change in market sentiment. Ki pointed to the inter-exchange flow pulse (IFP) turning “red” as the reason behind this decline. The IFP tracks Bitcoin movements between spot and derivative exchanges, reflecting market sentiment. A red IFP suggests that more traders are withdrawing their Bitcoin from derivatives exchanges, which are platforms used for entering financial contracts based on Bitcoin’s future price.
The Crypto Fear and Greed Index, which measures crypto market sentiment, has dropped to a “Neutral” score of 51. This is the lowest score it has reached in 51 days since Bitcoin fell below the critical $60,000 level to $59,122. Spot Bitcoin exchange-traded funds (ETF) have also experienced outflows over the past six trading days, according to Farside data. The largest outflow occurred on June 13, amounting to $226.2 million.
Despite these bearish indicators, some analysts are finding reasons for optimism regarding Bitcoin’s price. Glassnode lead analyst James Check, also known as “Checkmatey,” pointed to the Bitcoin Sell-side Risk Ratio reaching levels that suggest a market movement is imminent. He explained that all the profits and losses that were expected to occur have already happened, and now Bitcoin needs to establish a new price range to stimulate market emotions such as fear, greed, panic, or euphoria.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and make informed decisions when it comes to investment and trading moves.