Bitcoin Price Nosedives to a New 40-Day Bottom of $62,667 as Whales Cut Transactions to 8-Month Low

After a negative performance last week, BTC shed more than 150 billion from its market capitalization, accounting for over 12% in losses between June 15 and June 21.

Bitcoin price fell to a new 40-day bottom on Monday as institutional investors shifted their focus towards Ethereum and the roaring stock markets.

After a negative performance last week that saw more than 150 billion shaved off its market capitalization—accruing to over 12% in losses between June 15 and June 21—bears further tightened their grip on the Bitcoin markets over the weekend, setting the pioneer cryptocurrency up for a false start to the coming week.

Positive movements around Ethereum ETFs and bullish upswings in the US stocks markets—led by AI-chips manufacturing behemoth NVIDIA—pulled investors’ attention away from BTC in the recent days.

The chart above shows that Bitcoin price peaked at $65,026 on Friday, June 21, as bulls attempted to reclaim the $65,000 resistance level. But since then, the bears have flipped the tide and forced another 3.66% downtrend over the weekend.

Zooming out, Bitcoin price falling to a 40-day low of $62,667 on Monday, June 24, now means it has plunged 13% since the current correction phase began around June 7.

As hinted by the major news headlines in the past few days, Bitcoin price stagnation below $65,000 has been largely attributed to ETH ETFs’ imminent launch and rallying stock prices dominating investors mind-share.

However, an in-depth inquest into Bitcoin’s underlying on-chain trends shows that whale investor cutting back on their BTC trading activity may have played a more prominent role in the ongoing price downtrend as well.

IntoTheBlock's Large Transactions Count data tracks the total number of individual transactions exceeding $100,000 on any given trading day. This serves as a proxy for measuring the spate of whales’ trading activity within a cryptocurrency network.

As seen above, the Bitcoin network recorded a total of 4,580 unique large transactions exceeding $100,000 in nominal value at close of June 23. Worryingly, the chart shows that the number of the whale transactions has been in a steep decline since March 2024, when BTC price first reached retest all-time highs above $72,000.

In more concrete terms, the last time BTC whale transactions fell lower than the 4,580 large transactions recorded on June 23 was as far back as 8 months ago, on October 9, 2023, when it recorded 4,509 whale BTC transactions.

For a number of, whale investors cutting their trading activity to the lowest levels in over 8-months may have a negative impact of BTC price action in the week ahead.

Firstly, whale transactions provide much-needed liquidity to any cryptocurrency markets. As dramatic drop-off as observed above means that panic sellers now have less-liquidity available to conduct high-volume sell-offs without causing major price dips.

In essence, the whale transactions falling to an 8-month low now puts Bitcoin prices at risk of further downswings towards $60,000 in the days ahead.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-price-nosedives-day-bottom-whales-cut-transactions-month-low.html

The above is the detailed content of Bitcoin Price Nosedives to a New 40-Day Bottom of $62,667 as Whales Cut Transactions to 8-Month Low. For more information, please follow other related articles on the PHP Chinese website!