Bitcoin whales have significantly reduced their transaction activity in the past 48 hours, coinciding with a drop in Bitcoin’s price below $63,000. Data from Santiment shows 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.
The decline in whale activity corresponds with Bitcoin’s price falling from $64,685 to $63,422, and it has continued to decline further to $62,531 at the time of writing, according to CoinMarketCap data.
In addition to reduced transaction activity, whale traders who speculate on the future price of Bitcoin have also taken a step back. According to CryptoQuant CEO Ki Young Ju, these traders are currently in a “risk-off mode,” indicating a bearish change in market sentiment.
Ki Young Ju points 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 and reflects market sentiment. When the IFP turns red, it suggests that more traders are withdrawing their Bitcoin from derivative exchanges, which are platforms used for trading financial contracts based on Bitcoin’s future price.
Meanwhile, the Crypto Fear and Greed Index, which measures crypto market sentiment, has dropped to a “Neutral” score of 51. This is the lowest it has been in 51 days since Bitcoin fell below the critical $60,000 level to $59,122.
Spot Bitcoin exchange-traded funds (ETF) have also experienced a series of outflows in the past six trading days, according to Farside data. The largest outflow occurred on June 13, with $226.2 million being withdrawn.
Despite these indicators of a bearish market sentiment, some analysts remain optimistic about Bitcoin’s price. Glassnode lead analyst James Check, also known as “Checkmatey,” believes that the Bitcoin Sell-side Risk Ratio suggests that it is time for the market to make a move. He explains that all the profits and losses have already been taken, and now Bitcoin needs to establish a new price range to stimulate market emotions.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and make their own decisions when it comes to investments and trading.