Bitcoin price continues to plummet as whale activities deepen
- Bitcoin's price has continued to drop lower, diving below $65K over the last 24 hours.
- Despite investor profitability, the volume of transactions processed in the Bitcoin network has declined significantly, according to Glassnode.
- Bitcoin's market exposure among hedge funds has dropped drastically, according to ETC group data.
Bitcoin's price fell below $65,000 on Wednesday following Increased whale activities that may be sell orders. Meanwhile, hedge funds have experienced a drag in their Bitcoin exposure, which may be fueled by consistent outflows among Bitcoin ETFs.
Bitcoin continues to struggle, investors may be losing patience
The price of Bitcoin scraped below $65,000 on Wednesday, trading at $64,800 with no signs of recovery in sight. BTC's recent price action continues to dampen investors' confidence despite an increase in its dominance over the general crypto market.
While several investors have predicted a price reversal, increased whale activity might be a major player in Bitcoin's price decline.
Crypto tracker Whale Alerts detected several BTC deposits worth more than $1 billion in the past few hours. This follows a series of other heavy transactions that have occurred in the last few days, weakening the asset's price.
Meanwhile, crypto analyst Axel Adler reported miners have transferred over 71,000 BTC through OTC desks. "A growing balance at OTC desks can be associated with increasing selling activity outpacing Bitcoin demand," he said.
Read more: Week Ahead: Crypto’s doom or a new all-time high in the making?
A Glassnode report also states how the continuous decline in Bitcoin's price amid speculations about a bullish trend has "heightened indecision in the market."
Despite healthy investor profitability, the magnitude of volume being processed and transferred on the Bitcoin network following the ATH has declined drastically," the report states
Furthermore, Hedge Funds have reduced their Bitcoin market exposure to only 0.37 beta over the last 20 trading days. A beta value of 1 means a hedge fund's performance follows the value of Bitcoin, and a value below one indicates lower exposure and vulnerability to price.
Also read: Is the Bitcoin price bottom here?
"Crypto hedge funds have thrown in the towel on Bitcoin lately," ETC Head of Research André Dragosch stated on X.
André claims this is the lowest they have gone since December 2020. Notably, this coincides with the continuous outflows experienced within the last four days among Bitcoin ETFs, with $300 million in net outflows in these last two days.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
