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Bitcoin price fell to a new 40-day bottom of $62,667 on Monday June 24, as institutional investors switch focus towards Ethereum and the roaring stock markets, here’s how $BTC price could react in the week ahead.
Bitcoin price tumbles below $63k First Time in 40-Days
After a negative performance last week, $BTC shed more than 150 billion from its market capitalization, accounting for over 12% in losses between June 15 and June 21. Over the weekend, bears further tightened their on the Bitcoin markets, with the pioneer cryptocurrency shaping up for a false start to the coming week.
In the news, positive movements around Ethereum ETFs as well as bullish upswings in the US stocks markets, led by AI-chips manufacturing behemoth NVIDIA, have further pulled investors’ attention away from $BTC in the recent days.
The chart above shows that Bitcoin price peaked at $65,026 on Friday, June 21, as bulls attempted to reclaim the $65,000 resistance level. But since then, the bears have flipped the tide and forced another 3.66% downtrend over the weekend.
Zooming out, Bitcoin price falling to a 40-day low of $62,667 on Monday, June 24, means it has now plunged 13% since the current correction phase began around June 7.
Whale Investors Cut Bitcoin Transactions to 8-Month Low
As hinted by the major news headlines in the past few days, Bitcoin price stagnation below $65,000 has been largely attributed ETH ETFs‘ imminent launch and risking stock prices dominating investors mind-share.
However, an in-depth inquest into Bitcoin’s underlying on-chain trends shows that whale investor cutting back on their $BTC trading activity may have played a more prominent role in the ongoing price downtrend as well.
IntoTheBlock’s Large Transactions Count data tracks the total number of individual transactions exceeding $100,000 on any given trading day. This serves as a proxy for measuring the spate of whales’ trading activity within a cryptocurrency network.
As seen above, the Bitcoin network recorded a total of 4,580 unique large transactions exceeding $100,000 in nominal value at close of June 23. Worryingly, the chart shows that the number of the whale transactions has been in a steep decline since March 2024, when $BTC price first reached retest all-time highs above $72,000.
In more concrete terms, the last time $BTC whale transactions fell lower than the 4,580 large transactions recorded on June 23 was as far back as 8 months ago, on October 9, 2023, when it recorded 4,509 whale $BTC transactions.
For a number of, whale investors cutting their trading activity to the lowest levels in over 8-months may have a negative impact of $BTC price action in the week ahead.
Firstly, whale transactions provide much-needed liquidity to any cryptocurrency markets. As dramatic drop-off as observed above means that panic sellers now have less-liquidity available to conduct high-volume sell-offs without causing major price dips.
In essence, the whale transactions falling to an 8-month low now puts Bitcoin prices at risk of further downswings towards $60,000 in the days ahead.