Markets
Who is behind the massive Bitcoin sell-off? Market mystery revealed
The cryptocurrency market is facing a wave of pessimism as fears of further declines grip investors. Bitcoin (BTC) saw a 3 percent drop in the last 24 hours, falling to around $63,900 during Friday’s session in London.
Interestingly, the cryptocurrency market mirrored the performance of major stock indices in Asia and Europe, which were also in the red despite a notable increase in the global liquidity index. JPMorgan analysts led by Nikolaos Panigirtzoglou noted that the market is gradually turning bearish due to emerging doubts and a lack of supporting narratives.
Decreasing investor interest
According to on-chain data provided by Glassnode, Bitcoin has been experiencing a slowdown in exchange-related on-chain activities, thus suggesting a decrease in investor interest. Amid continued cash outflows from US-based companies spot Bitcoin ETFs and notable selling pressure from miners, the BTC funding rate turned negative.
In the last five days alone, US-based spot Bitcoin ETFs have seen outflows of nearly half a billion dollars. Meanwhile, Bitcoin whales have offloaded more than $1.2 billion through various OTC brokers.
Despite the continued sell-off, Johnnie Jacks, co-founder of PaciFi and MoonGate Finance, remains optimistic. He believes current whale and ETF sales are still relatively insignificant. Jacks also highlighted the upcoming Bitcoin halving and increasing Ethereum volume amid upcoming spot ETF listings as positive indicators for the market.
Medium-term expectations? Rude!
Bitcoin It has lost several key support levels over the past two weeks, suggesting a bearish medium-term outlook. While a rebound is possible at any time, the current focus is on holding support above $60,000 as the weekly Relative Strength Index (RSI) approaches the 50 mark.
If bearish sentiment persists, many analysts predict that Bitcoin could fall to around $48,000 before bulls regain control. This potential decline is seen as a crucial testing ground for Bitcoin’s resilience in the face of continued market turmoil.
Read too: Crypto Market Crash: Whales Target These 3 Altcoins
Is this the start of a crypto winter? Stay tuned for more updates.