Bitcoin is back above $21,000 after dipping below $20,000 for the first time since December 2020. The largest cryptocurrency by market cap witnessed an immense plunge in June as investors looked to sell off to avoid further losses. The increase in selling pressure was attributed to Bitcoin whales who rushed to buy the dip, hoping that a bullish momentum would follow.
Over the weekend, there was a record increase in Bitcoin outflows amounting to 30,000 BTC translating to over $600M. This formed part of over 64,000 BTC moved out of crypto exchanges since June. Most of these coins are reported to have come from Coinbase Pro and is reportedly the most significant transfer of Bitcoins in the last 35 days. Other exchanges have also witnessed large Bitcoin buyouts from whales who looked to “make hay while the sun shone.”
Over the reported period, large amounts of BTC were transferred from crypto exchanges. This consistency in large Bitcoin outflows indicated that large corporations and investors were confident of an impending bullish momentum.
In the last 24 hours, Bitcoin’s liquidity has dropped by over $70 Million, indicating massive buyouts by Bitcoin whales. This shows high investor sentiments in Bitcoin by institutions and whales. However, investor sentiments in the retail trade of Bitcoin fell considerably with the drop in Bitcoin prices, with such investors gripped by uncertainties.
According to Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, institutional trade could sway Bitcoin prices and the overall market sentiments all over again.
Last week alone, it was reported that 16 new whales had joined the Bitcoin network and bought out close to $100 Million worth of Bitcoin which contributed to the increase in buying pressure and the downward rally in the price of Bitcoin.
Bitcoin’s downward rally is, however, not isolated. Other altcoins suffered a similar fate, with Ethereum also dropping below its psychological price mark of $1,000. Most charts were also painted red across the week before embarking on a slight bullish momentum.
BTCUSD Chart by TradingView
As of press time, however, most coins showed green and had regained the upward rally. Ethereum has reclaimed the $1,200 mark, BTC is back at above $21k, and BNB is well above $240. This spells good news for both small and large Bitcoin investors as we wait to see how the altcoins perform in the near future.