In the last two days, transactions involving Bitcoin (BTC) of $100,000 and above have seen a significant decrease, resulting in Bitcoin’s value retracing to below $62,000. The decrease corresponds with a notable downtime in the activities of large-scale Bitcoin investors, or ‘whales’, right before the dip below the $62k mark occurred.
Data obtained from Santiment revealed that on June 23rd, there were 9,923 large-scale transactions, showing a dramatic 42% decrease from 17,091 recorded within the preceding two days. Alongside this, Ki Young Ju, CryptoQuant CEO, indicated that whale traders projecting Bitcoin’s future price have also taken a step back.
Ki points out the decrease in large traders’ activity on derivatives exchanges, a phenomenon termed “risk-off mode,” as the significant factor behind BTC’s fall. He mentioned the Inter-Exchange Flow Pulse (IFP) turning ‘red’. This system tracks the movement of Bitcoin between spot and derivative exchanges, mirroring the market sentiment. The shift to red suggests an increase in traders pulling their Bitcoin from derivative exchanges that deal with financial contracts based on Bitcoin’s future price.
Simultaneously, the Crypto Fear and Greed Index, tasked to gauge the crypto market sentiment, noted a drop to a ‘neutral’ score of 51, its lowest in the past 51 days when Bitcoin fell from the crucial $60,000 to $59,122. Furthermore, Spot Bitcoin exchange-traded funds (ETF) recorded several outflows over the last six trading days.
Despite this, some analysts observe other indicators as promising signs for Bitcoin’s price. James Check, lead analyst at Glassnode, believes the market is poised for a move as the Bitcoin Sell-side Risk Ratio has reached crucial levels. He emphasized that all predictable profits and losses have been accounted for, meaning Bitcoin will need a new price range to stimulate fear, greed, panic, or euphoria to see a substantial change.