The Identity Revealed Unraveling the Enigma of the Market Mystery Behind the Massive Bitcoin Selloff
The cryptocurrency market is currently experiencing a wave of pessimism as concerns grow over the potential for further decline in prices. In the past 24 hours, the price of Bitcoin (BTC) has dropped by approximately 3 percent, settling around $63,900 during the London session on Friday.
Interestingly, the cryptocurrency market seems to be following the lead of major stock indexes in Asia and Europe, which are currently in the red. This is despite the fact that there has been a noticeable increase in the global liquidity index. Analysts from JPMorgan, led by Nikolaos Panigirtzoglou, suggest that doubts and a lack of supportive narratives are gradually turning the market bearish.
On-chain data provided by Glassnode reveals a decline in exchange-related on-chain activity for Bitcoin, indicating a decrease in investor interest. This is further supported by the ongoing outflows from US-based spot Bitcoin ETFs and significant selling pressure from miners, resulting in a negative funding rate for BTC.
Recent data also shows that Bitcoin whales, or long-term holders of large amounts of BTC, have been selling off their holdings. Over the past two weeks, these whales have dumped approximately $1.2 billion worth of Bitcoin, according to on-chain data.
In addition to the sell-offs by whales, US-based spot Bitcoin ETFs have seen nearly half a billion dollars in cash outflows in the past five days. However, some experts, like Johnnie Jacks, co-founder of PaciFi and MoonGate Finance, believe that these sell-offs are relatively insignificant. Jacks also points out that the Bitcoin halving is starting to have an impact, as the volume of Ethereum increases and the upcoming spot ETF listing approaches.
Looking ahead, the outlook for Bitcoin seems bearish in the midterm. The price has already lost several major support levels in the past two weeks, and the weekly Relative Strength Index (RSI) is dropping towards the 50 level. While a rebound could occur at any time, analysts predict that if the bearish sentiment continues, the price of Bitcoin could drop to around $48,000 before the bulls regain control.
Tags: Bitcoin, Price Analysis