Bitcoin Whales Step Back: Where Is Capital Flowing?

The significant decline in transaction activity of whale investors observed in Bitcoin in the last two days raises question marks in the market. This situation, which is parallel to the Bitcoin price falling below $ 63,000, brings with it speculation that whales are withdrawing from Bitcoin and directing their investments to other assets.

Bitcoin whales’ processes have decreased

Bitcoin transactions worth $100,000 and above have decreased significantly in the last two days. This decline parallels the Bitcoin price falling below $63,000. According to centiment data, whale numbers decreased by 42% on June 23 compared to the level two days ago, falling to 9,923. CryptoQuant CEO Ki Young Ju attributes this decline to investors losing optimism about the future price of Bitcoin.

Ju points to this as a sign that the Interexchange-Flow-Pulse (IFP) indicator has turned “red”, which indicates that whale investors on derivative exchanges have entered a risk-off mode and started withdrawing their Bitcoins from these exchanges. Following the recent declines, the Crypto Dread and Greed Index dropped to 51 points and reached the Neutral level. This shows that investors have a cautious view of the market.

Is capital flowing into altcoins?

Meanwhile, the altcoin market has also been declining in recent weeks. Last weekend, the entire altcoin market, including Ethereum (ETH) and other top 10 altcoins, lost more than $25 billion. However, analysts predict that this may be the last correction before new capital flows into the altcoin market. Prominent crypto analyst Michael van de Poppe claims that the recent downtrend for altcoins is over and major capital rotation could begin in the coming weeks.

Van de Poppe states that the altcoin market is in its final phase and investors are preparing for a potential bullish reversal. He also highlights that although the altcoin market fell 30% in the last correction, it is still down 50% from its all-time high in 2021. Poppe expects a 100% rally in altcoins once the correction ends, which could be in line with Bitcoin’s trend.

Although Bitcoin and altcoin markets have been in a downward trend lately, some analysts expect a recovery in the market in the coming weeks. The fact that whales reduce transaction activity in the Bitcoin market and the general sentiment in the market is reduced to a neutral level creates uncertainty. However, analysts predict that the altcoin market has experienced its recent decline and a new uptrend is about to begin. It is important for investors to be careful and follow the market closely during this period.