This week, Bitcoin's value dwindled to $86,930, marking its first drop below the $90,000 support in over three months. This event has generated negative sentiment among traders, who had been in a 'neutral' and 'greed' state, transforming into 'fear' according to the Crypto Fear & Greed Index.
Bitcoin Supply on Exchanges Grows While Whales Dump BTC
Bitcoin's price began to decline following its all-time high of $109,000. There is currently an increase in the supply of Bitcoin on exchanges while the supply outside of exchanges is being reduced. This suggests that Bitcoin holders are moving assets to exchanges in anticipation of further price drops.
Institutional Investors Lose Interest in Bitcoin
According to CoinShares data, institutional investors have reduced their investments in Bitcoin by $595 million over the past month, while interest in other cryptocurrencies like Ethereum and Solana is increasing. This is seen as a key factor in the decline in Bitcoin's price.
Are Whales Dumping Bitcoin?
Analysis of large trader operations shows a decrease in the number of large Bitcoin transactions, indicating big holders are gradually selling their assets. Profit-taking on the market is increasing pressure on Bitcoin's price.
The Bitcoin situation remains uncertain. Pressure from whales selling and institutional investor bias against Bitcoin indicates further fluctuations are likely, although any positive macroeconomic shift could nudge the price upwards.
