Bitcoin Whales Pull Back – What’s Next for the Price?

Bitcoin’s value has dropped by 7% over the past week, reflecting a concerning lack of momentum in the market.

While the broader cryptocurrency landscape is under pressure, a key factor behind Bitcoin’s decline is the noticeable inactivity of large-scale investors, commonly known as whales, who are critical to sustaining price stability.

Recent data reveals that major Bitcoin holders are significantly scaling back their activity. Over the last seven days, net inflows to whale wallets have sharply decreased, signaling a preference for selling rather than accumulating. This shift, as tracked by IntoTheBlock, suggests a growing reluctance among these investors to bet on Bitcoin’s short-term performance.

Additionally, the frequency of large Bitcoin transactions has nosedived. Transfers valued between $100,000 and $1 million have seen a 48% reduction, while transactions exceeding $1 million but below $10 million have dropped by 50%. Such a decline in high-value trades indicates weakened confidence from these influential market participants, creating less upward pressure on Bitcoin’s price.

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Bitcoin is currently trading around $94,000. However, if the current lack of whale activity persists, this support could crumble. Analysts caution that a break below this point might trigger a rapid descent.

With major investors seemingly hesitant to reengage, the outlook for Bitcoin appears precarious. The coming days will likely determine whether the market can stabilize or if deeper losses are ahead.

Kosta Gushterov