The post Who’s Behind the Massive Bitcoin Sell-off? Market Mystery Revealed appeared first on Coinpedia Fintech News
The cryptocurrency market has been rocked with high pessimism amid heightened fear of further bearish sentiments over the weekend. Bitcoin (BTC) price dropped around 3 percent in the last 24 hours to hover around $63,900 on Friday during the London session.
The cryptocurrency market mimicked major stock indexes in Asia and Europe that were in red, despite the notable rise in global liquidity index. According to JPMorgan Analysts led by Nikolaos Panigirtzoglou, the market is gradually turning bearish due to emerging doubts and few supportive narratives.
Bitcoin Whales on a Selling Spree
According to on-chain data provided by Glassnode, Bitcoin has been experiencing a downturn in exchange-related on-chain activity, thus suggesting decreased investor interest. Amid the ongoing cash outflows from US-based spot Bitcoin ETFs and notable selling pressure from miners, the BTC’s funding rate has turned negative.
The big sellers have finally been revealed – veteran $BTC whalesThey've offloaded billions in Bitcoin alreadyOn-chain data reveals these long-term $BTC whales have dumped a massive $1.2B worth of $BTC over the past two weeksThis unexpected wave of selling, highlighted by… pic.twitter.com/Zwd1TLw2qP
— Johnnie Jacks (@johnnie_jacks) June 21, 2024
In the past five days, US-based spot Bitcoin ETFs have registered nearly half a billion in cash outflows, while Bitcoin whales dumped over $1.2 billion in different OTC brokers.
However Johnnie Jacks, co-founder of PaciFi and MoonGate Finance, believes the ongoing Bitcoin sell offs from whales and spot ETFs is still relatively insignificant. Furthermore, Jacks highlighted that the Bitcoin halving is gradually taking effect as the Ethereum volume increases amid the upcoming spot ETF listing.
Midterm Expectations
Bitcoin price has lost several major support levels in the past two weeks, thus indicating a midterm bearish outlook. While a rebound could take place anytime, Bitcoin price is aiming for the support level above $60k, as the weekly Relative Strength Index (RSI) drops towards the 50 level.
In case the bearish sentiment persists ahead, most analysts believe Bitcoin price will drop towards $48k, before the bulls take control.