Bitcoin’s Price Surge
Bitcoin has returned to $105,900 after the recent Israel-Iran ceasefire on Tuesday. However, panic and fear, particularly from newer Bitcoin whales, are fueling increased volatility in the cryptocurrency market.
Market Dynamics
According to CryptoQuant, significant realized losses from new whales have been a major factor. These investors have been aggressively selling Bitcoin under pressure, contributing to market downturns.
Impact of New Whales on Bitcoin Price
Bitcoin has exhibited wide fluctuations since mid-June, beginning the month near $107,000, surpassing $110,000, and dipping below $100,000.
Between June 14 and 22, whales reported realized losses of around $228 million. A notable spike occurred on June 17 with $95 million lost in a single day. Almost $85 million of these losses were attributed to new whales, while older whales accounted for only $8.2 million in losses. A subsequent spike on June 22 showed $51 million in losses, with a more balanced distribution between new and older whales.
New whales who invested at higher price points seem particularly susceptible to panic selling during geopolitical unrest. This behavior heightens price volatility and reinforces resistance at crucial levels around $111,000.
Selling Pressure Indicated by Whale Ratio
The Exchange Whale Ratio has remained high throughout June, indicating significant whale activity on exchanges. A higher ratio often suggests that whales are depositing Bitcoin in preparation for selling.
Data shows this ratio increased during Bitcoin’s attempts to break above $110,000. Whales appeared poised to sell, which limited upward price movement. The ratio briefly declined as Bitcoin dropped below $102,000 but increased again as prices stabilized around $105,900.
Overall, this activity indicates that whales are actively managing risks, thus contributing to selling pressure and market uncertainty.
Influence of Geopolitical Factors
Recent geopolitical tensions, including the Israel-Iran conflict and the subsequent ceasefire announcement, have heightened market anxiety. Newer whale investors appear particularly reactive to negative news, resulting in rapid selling that exacerbates volatility.
This rapid movement can trigger margin calls for leveraged traders, intensifying downward price movements and obstructing sustained upward trends. For Bitcoin to break through the critical $111,000 level, analysts suggest that whale selling pressure needs to decrease. Lower realized losses and reduced inflows on exchanges would signal a more confident market.
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