Bitcoin (BTC) Price Crash Intensifies as Whales and Institutions Extract Profits, Targeting $54,000 Support
- WBOYOriginal
- 2024-07-11 13:49:18686browse
The bearish hold over the crypto markets is intensifying as the Bitcoin price continues to crash below $58,000.
As the Bitcoin price continues to crash below $58,000, the bearish grip on the crypto markets is intensifying. The recent price drop from the highs has not only grabbed the attention of retail traders but also the larger market participants, such as institutions, whales, and dormant addresses, amid the growing uncertainty over the token's future trajectory.
A trend observed in the past 24 hours, which is contributing to the selling pressure, is the entry of bigger players into the market to extract some profits. Whale Alert, a platform that tracks significant transfers in the crypto space, highlighted a large transfer of about 119 BTC.
A dormant address containing 119 #BTC (6,992,389 USD) has just been activated after 12.4 years (worth 599 USD in 2012)!
These transfers occurred as the Spent Output Profit Ratio (SOPR) for long-term Bitcoin holders surged above 10. When the levels hit double digits, it indicates that these tokens were moved on the blockchain with substantial profits.
The high SOPR also aligns with a price correction, suggesting that long-term investors realized profits that were 10 times their initial investment. Moreover, the data also showed that holders who have kept BTC for over 5 years also started to move their tokens to extract some gains.
The Spent Output Age Bands chart indicates the age categories of the moved coins. The highest activity was observed among holders who have held Bitcoin for 5 to 7 years. Hence, it appears that long-term investors realized significant profits, contributing to Bitcoin's price decline.
Therefore, it becomes crucial to monitor their behavior continuously, as further price corrections could follow if the selling continues.
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