Last week, Bitcoin soared to unprecedented levels beyond $123,000 before retreating slightly. By Monday, it approached $119,600. As the price stabilizes below this threshold, large-scale investors, known as whales, are actively cashing in on their gains.
This trend could influence Bitcoin’s short-term price trajectory if selling pressure rises.
Increase in Whale Transactions
When examining the monthly average of Bitcoin inflows to minimize fluctuations, CryptoQuant observed that during the previous two market peaks, whale transactions to crypto exchanges exceeded $75 billion, initiating phases of correction or stabilization.
At present, the monthly average has significantly increased by nearly $17 billion, rising from $28 billion to $45 billion between July 14 and 18. This surge likely mirrors the recent movement of 80,000 BTC, suggesting that whales have capitalized on Bitcoin’s fresh all-time high to lock in profits.
Yet, an examination of current daily inflows reveals a noticeable decline, a trend that CryptoQuant believes warrants close attention. If the decreasing trend in daily inflows persists, it could alleviate the overall selling pressure in the market, as whale activities have historically had a major impact during previous peaks.
Though the current inflow levels are still below previous peaks that triggered market corrections, the recent uptick indicates active whale participation.
Looking Ahead
The broader economic context is another aspect to consider regarding Bitcoin’s direction in the coming days. Nonetheless, economic indicators such as US housing data, PMIs, and durable goods orders are unlikely to have a major effect on high-risk assets like Bitcoin this week.
Furthermore, futures markets anticipate that the Federal Reserve will maintain interest rates at its upcoming meeting on July 30. This decision is expected to reduce immediate macroeconomic pressure on cryptocurrency markets.
The overall crypto market capitalization has slightly decreased from a $4 trillion high but remains up by over 17% this year. Risk sentiment might shift as significant tech earnings reports are released this week, potentially impacting the leading cryptocurrency’s price movements.
As the market evaluates Bitcoin’s next steps, not everyone remains optimistic at these price points. In fact, Robert Kiyosaki, author of “Rich Dad Poor Dad,” cautioned on Monday that Bitcoin, along with gold and silver, could experience a significant drop if current “bubbles” burst. Kiyosaki mentioned he plans to purchase these assets only after such a correction occurs.
Previously, he advised against overinvestment, stating, “Pigs get fat, hogs get slaughtered.”
