Crypto News

Market Fear Surges As Bitcoin Plummets To $65K: Whales Sell, Miners and Retail Investors React

The cryptocurrency market is gripped by fear as Bitcoin has dropped to $65,000, its lowest value since May 16th. This decline has sparked a surge in mentions of selling or taking profit, indicating heightened panic among small traders.

Such sentiment often precedes a temporary bounce, presenting potential buying opportunities amid the ongoing FUD (fear, uncertainty, and doubt).

Ki Young Ju, the founder and CEO of CryptoQuant, notes that the average entry price for Bitcoin traders is around $47,000. In a bull market, Bitcoin’s price typically remains above this level, suggesting that despite the recent 27% drop, the market could still be considered bullish.

Ju advises traders to maintain a long-term bullish outlook while avoiding excessive risks.

On-chain data from Santiment reveals that Bitcoin whales have offloaded over 50,000 BTC in the past ten days, amounting to approximately $3.30 billion. This significant sell-off has contributed to the market’s recent volatility.

However, there are signs of optimism as the Taker Buy Sell Ratio on HTX Global surged to 545, indicating strong buy pressure and bullish sentiment. This suggests a potential upward movement for Bitcoin in the near future.

Bitcoin miners have also played a role in the recent price correction, selling over 1,200 BTC worth more than $79.20 million. With the average mining cost currently at $86,668, historical trends suggest that Bitcoin often surges above its mining cost, hinting at a possible rebound.

Bitcoin ETFs Net Inflow Stays Negative 

The Bitcoin ETF net inflow on June 14, 2024, was -$190 million, continuing a trend of negative flows. The entire trading week recorded a negative inflow of $581.4 million, with only one day of positive flow. Notably, BlackRock’s iShares Bitcoin Trust (IBIT) was the only ETF to see an inflow. After 108 trading days, the cumulative total net inflow stands at $15.1 billion.

In summary, while Bitcoin’s recent decline has sparked fear and significant selling, indicators of strong buy pressure and historical trends suggest potential for recovery. Traders are advised to stay cautious but consider the long-term bullish potential of Bitcoin.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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