Cryptocurrencies

Bitcoin whales slowed their trading activity over the past two days, before the price fell

Bitcoin whales slowed down their trading activities over the past two days, before the Bitcoin price fell below $63,000.

On June 23, the total number of Bitcoin whale transactions (over $100,000) reached 9,923 over the previous two days, down 42% from the 17,091 transactions recorded over the previous two days, according to Santiment data.

The change in whale behavior comes amid a decline in the price of Bitcoin (BTC) from $64,685 to $63,422, and has since fallen to $62,531 at press time, according to data from CoinMarketCap.

Bitcoin is down 2.92% in the last 24 hours. Source: CoinMarketCap

Meanwhile, whale traders who were betting on the future price of bitcoin also backed away, according to Ki Young Ju, CEO of CryptoQuant.

“Whale traders on derivatives exchanges are in risk-aversion mode,” Key said in a June 23 article, the term for a downward shift in market sentiment.

Source: Ki Young Joo

Key cited trading flow momentum (IFP) turning red as the reason for the decline. IFP tracks Bitcoin’s movements between spot and derivatives exchanges, reflecting market sentiment.

IFP turning red indicates an increase in traders withdrawing their Bitcoin from derivatives exchanges, which are platforms used to enter into financial contracts based on the future price of Bitcoin.

Cryptocurrency index moves from greedy to neutral

The Cryptocurrency Fear and Greed Index, which measures cryptocurrency market sentiment, fell to a “neutral” score of 51, its lowest level in 51 days since Bitcoin fell below from the critical level of $60,000 to $59,122.

Exchange-traded funds (ETFs) have also seen a series of capital outflows over the past six trading days, according to Farside data. The biggest day of releases over the six days was $226.2 million on June 13.

about: Bitcoin price loses ground as traders turn their attention to TON, PEPE, KAS and JASMY

On the other hand, other analysts consider various indicators as indicators of optimism regarding the price of Bitcoin.

“Bitcoin’s sell-off risk has reached levels that indicate it is time for market action,” wrote James Check, senior analyst at Glassnode, also known as “Checkmatey,” in an article in the June 23.

“All the profits that were supposed to be made have been made. The same goes for losses, he added, explaining that Bitcoin will have to “find a new price range to light the fire of fear, greed, panic or euphoria.”

review: Recent Ethereum Pullback Could Be a Gift: Dynamo DeFi, X Hall of Flame

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.

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