Bitcoin Falls Below $63,000 After 42% Drop in BTC Whale Transactions

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

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

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

Meanwhile, whale traders betting on the future price of Bitcoin have also taken a step back, according to Ki Young Ju, CEO of CryptoQuant.

“Whale traders on derivatives exchanges are in risk-aversion mode,” Ki said in a June 23 X article, the term for a bearish change in market sentiment.

Ki pointed out that the inter-trade flow impulse (IFP) turning “red” was the reason for this 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.

Crypto Index Shifts from Greed to Neutral

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

Spot Bitcoin exchange-traded funds (ETFs) have also seen a series of outflows over the past six trading days, according to Farside data. The largest six-day outflow was $226.2 million on June 13.

Related: Bitcoin price loses ground as TON, PEPE, KAS and JASMY attract traders’ attention

On the other hand, other analysts view different indicators as signs of optimism about the price of Bitcoin.

“Bitcoin’s sell-side risk ratio has reached levels indicating that it is time for the market to move,” 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 taken were taken. Ditto for losses,” he added, explaining that Bitcoin will have to “find a new price range to stoke the fire of fear, greed, panic or euphoria.”

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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.