Bitcoin Price Crashes to $62,000 as Whale Transactions Drop to Eight-Month Low

Bitcoin grapples with significant selling pressure, dropping to a new 40-day bottom of $62,667 as of Monday, June 24.

As institutional investors’ focus drifts towards Ethereum and the soaring stock markets, BTC has shed over $150 billion from its market capitalization. This represents a more than 12% decline between June 21 and June 15. 

Below is a breakdown of Bitcoin’s possible trajectory in the coming days.

Whale Investors’ Bitcoin Transactions Hit Eight-Month Low

Bitcoin has posted a bearish outlook for most of June following stiff competition with roaring stock market prices and Ethereum ETFs for investors’ attention. 

Moreover, its decline below the $65,000 price level is likely because of a decline in trading activities. According to data from IntoTheBlock, BTC whale transactions have declined rapidly since March 2024.

Bitcoin recorded 4,580 separate large transactions above $100,000. Historically, the last time BTC whale transactions dropped below 4,580 was on October 9, 2023, about eight months ago. 

Hence, Bitcoin whale transactions hitting an eight-month low could signal a possible decline to $60,000 in the coming days. This decline in whale activity may have contributed to the ongoing downtrend in Bitcoin’s price.

IntoTheBlock notes that the behavior of long-term holders is a key indicator for understanding a market cycle. The data reveals that long-term Bitcoin holders began selling their holdings in January.

Conversely, long-term Ethereum holders have continued to accumulate ETH tokens. Ethereum currently has more yield opportunities, making it a more attractive option.

Additionally, the report notes that Bitcoin long-term holders began taking profit after the Spot ETF-led price surge. However, Ethereum holders still anticipate the launch of the Ethereum Spot ETF and a possible rally. 

In addition, IntoTheBlock revealed the halving event in April slashed miners’ profits, leading to a sell-off. Per the report, Bitcoin miners sold over 30,000 BTC tokens in June worth approximately $2 billion, with miner inventories hitting 14-year lows. So, these additional BTC sales also contribute to the price decline observed in June.

Bitcoin Shows Bearish Trend, What Next for the Apex Cryptocurrency?

BTC has lost 8.9% of its gains in the last 30 days as sellers continue to pressure. As of 5:50 AM EST, Bitcoin trades at $61,349, with a 4.5% decline in the past 24 hours.

Bitcoin has entered a descending channel, forming lower lows on the daily chart. It has declined below the $63,500 price level and is dropping to the $60,500 support.

Also, BTC is trading below the Parabolic SAR indicator which suggests a further decline for the asset. The RSI indicator is in the oversold region with a value of 28.45, implying that sellers are still in control.

Bitcoin will likely drop below the $60,500 price level if buying activity remains low in the coming days until the buyers re-enter the market.