Bitcoin whales slowed their transaction activity in the past two days, just before Bitcoin’s price dropped below $63,000.
On June 23, there were 9,923 Bitcoin whale transactions (exceeding $100,000) over the previous two days, marking a 42% decrease from the 17,091 transactions recorded in the two days prior, according to data from Santiment.
This shift in whale behavior coincided with Bitcoin’s price falling from $64,685 to $63,422 and further declining to $62,531 at the time of publication, as reported by CoinMarketCap.
Meanwhile, whale traders speculating on Bitcoin’s future price have also pulled back, according to CryptoQuant CEO Ki Young Ju.
“Whale traders on derivatives exchanges are in risk-off mode,” Ki stated in a June 23 post on X, indicating a bearish shift in market sentiment.
Ki attributed the decline to the inter-exchange flow pulse (IFP) turning “red.” The IFP monitors Bitcoin movements between spot and derivative exchanges, serving as an indicator of market sentiment.
The IFP turning red indicates an increase in traders withdrawing their Bitcoin from derivatives exchanges, which are platforms used for trading financial contracts based on Bitcoin’s future price.
Crypto Sentiment Index Shifts to Neutral from Greed
The Crypto Fear and Greed Index, a gauge of market sentiment in the crypto space, fell to a “Neutral” score of 51, marking its lowest level in 51 days since Bitcoin dropped below the crucial $60,000 threshold to $59,122.
In addition, spot Bitcoin exchange-traded funds (ETFs) have seen continuous outflows over the past six trading days, as reported by Farside data. The largest single-day outflow during this period amounted to $226.2 million on June 13.
“The Bitcoin Sell-side Risk Ratio has reached levels indicating it’s time for the market to make a move,” wrote James Check, lead analyst at Glassnode, known as “Checkmatey,” in a June 23 post on X.
“All potential profits and losses have been realized,” he elaborated, suggesting that Bitcoin will now need to establish a new price range to ignite feelings of fear, greed, panic, or euphoria.
