Bitcoin Tumbles Further from $100,000 as Whales Cut Exposure

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As an analyst with over two decades of experience in financial markets, I’ve seen my fair share of market fluctuations and trends. The current 7% decline in Bitcoin (BTC) over the past week is a cause for concern, especially when you delve deeper into the data.

Over the last seven days, Bitcoin (BTC) has dropped by 7%. This decrease, in part, can be attributed to the overall weakness in the cryptocurrency market. However, the main cause seems to be a drop in purchasing activity from significant investors, often called “whales.

Observers who closely follow significant Bitcoin holders may fear a potential drop if they remain inactive, given the following reasons.

Bitcoin Whales Refrain From Buying

Based on reports from IntoTheBlock, there’s been a significant decrease of 116% over the last week in the outflow of Bitcoin held by large investors – these are individuals or entities who possess more than 0.1% of the total Bitcoin supply currently in circulation.

In simpler terms, netflow refers to the gap between the quantity of cryptocurrency moving into and out of big-time investors’ accounts (incoming versus outgoing transactions). Similar to Bitcoin, when this indicator decreases, it suggests that these significant investors are offloading their cryptocurrency holdings by selling them for a profit because outflows surpass inflows.

Furthermore, the decrease in the number of significant daily Bitcoin transactions as reported by IntoTheBlock, which shows a drop of 48% in transactions valued between $100,000 and $1 million over the last week, points to a reduction in whale activity.

During that particular span, I’ve noticed a significant decrease – approximately 50% – in the frequency of Bitcoin transactions valued between one million and ten million dollars.

It’s worth noting that the decrease in significant Bitcoin transactions by large investors is significant, as less purchasing from these big players could diminish the price floor and heighten the chances of additional price drops.

BTC Price Prediction: Break Below $95,690 Could Spell $85,000 Crash

On a daily basis, Bitcoin (BTC) slightly hovers over its support at approximately $95,690. As whale activity decreases, there’s a possibility that this crucial level won’t be sustained, leading to BTC’s price dropping below $90,000 and potentially reaching around $85,721 on the market.

Should the market sentiment reverse and significant Bitcoin holders (referred to as ‘whales’) recommence their coin amassing, this action could potentially ignite a surge towards the digital currency’s previous record high of $108,388.

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2024-12-24 00:02