A recent sell-off of Bitcoin has led to losses in hundreds of millions in unrealized gains, particularly impacting crypto whales.
Whale Losses
According to CryptoQuant, a sharp drop in BTC's price in early July triggered heavy losses among large wallets. In just a few days, Bitcoin whales collectively lost over $100 million, with new whale addresses contributing significantly to these realized red.
Market Signals
It's not entirely about spot selling. On the derivatives front, funding rates, particularly the Open Interest-weighted metrics, remain unusually flat. Typically, market swings cause spikes, but here, despite noticeable liquidations, funding has shown little response.
Ethereum Trader Situation
ETH was not spared either. The funding rate on ETH futures showed a slight positive tilt even as prices fell below $2,400. Traders like user @qwatio reportedly suffered serious losses, indicating the volatility might lead to further consequences in the market.
The situation in the Bitcoin and Ethereum markets illustrates a dominance of uncertainty and emotional trading, potentially leading to continued price fluctuations.
