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Bitcoin whales have significantly slowed their transaction activity in the past two days, coinciding with Bitcoin’s price drop below $63,000. Data from Santiment shows that the number of Bitcoin whale transactions — those worth $100,000 or more — fell by 42% from 17,091 to 9,923 over the past two days.
Whale Activity and Market Sentiment
This change in whale behavior comes as Bitcoin’s price fell from $64,685 to $63,422, further declining to $62,312 at the time of publication, according to CoinMarketCap data. CryptoQuant CEO Ki Young Ju noted that whale traders on derivatives exchanges have adopted a risk-off approach, indicating a bearish market sentiment. “Whale traders on derivatives exchanges are in risk-off mode” Ki stated in a June 23 X post.
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Ki attributed this sentiment shift to the Interexchange-Flow-Pulse (IFP) turning red, signaling increased Bitcoin withdrawals from derivatives exchanges. These platforms are used for entering financial contracts based on Bitcoin’s future price, and the red IFP suggests a bearish outlook.
Market Sentiment Indicators
The Crypto Fear and Greed Index, which measures crypto market sentiment, has dropped to a “Neutral” score of 51, its lowest in 51 days. This drop follows Bitcoin falling below the critical $60,000 level to $59,122. Additionally, spot Bitcoin exchange-traded funds (ETFs) have seen outflows over the past six trading days, with the largest outflow of $226.2 million occurring on June 13, according to Farside data.
Contrasting Views on Bitcoin’s Future
Despite the bearish sentiment, some analysts remain optimistic about Bitcoin’s future. Glassnode lead analyst James Check, also known as “Checkmatey,” pointed to the Bitcoin Sell-side Risk Ratio as a positive indicator. “The Bitcoin Sell-side Risk Ratio has reached levels signaling it is time for the market to move,” Check wrote in a June 23 X post. He explained that all potential profits and losses have been realized, and Bitcoin needs to find a new price range to incite fear, greed, panic, or euphoria.
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