 
 
The cryptocurrency market experienced slight fluctuations after a period of bullishness, resulting in mixed sentiments among traders. After the Bitcoin price reached an all-time high of over $122,000, retail and institutional traders adjusted their short-term patterns, although corporate buying continued. This led to a 3% initial drop in the BTC price before it moved sideways to $117k, which in turn lowered the wider market’s surge.
Massive Whale Inflows Heighten Woes
Bitcoin’s price drop was fueled by large whale outflows from holding positions to centralized exchanges like Binance, Coinbase, and Kraken. Most platforms recorded large numbers as profit taking excited both retail and institutional traders. Inflows to centralized exchanges signal a bearish trend for assets, as they facilitate easy sales, while outflows indicate long-term holdings.
As of June 25, over 40,000 BTC flowed to exchanges, igniting a flash dump, CryptoQuant data shows. Although net buying interest remains high, bear activities play a factor in retail demand, which is needed for the market to smash new highs. This year, retail holdings surged before the total market cap surpassed the $4 trillion mark.
Binance, the largest exchange by trading volume, saw 8,000 net BTC inflows, with other on-chain metrics showing a clear loss of momentum. However, CryptoQuant analyst Nino wrote that Bitcoin has stabilized over the past week after record highs.
“Meanwhile, funding rates across major derivatives exchanges such as OKX, Binance, Bybit, Deribit, HTX, and BitMEX have stayed relatively subdued, indicating a reduction in excessive leverage and a more cautious market stance. With little liquidation activity and funding rates hovering near neutral levels rather than turning negative…”
 
On the flipside, the market recorded days of outflow to other custodians, showing investor repositioning as the price nears short-term support. Furthermore, whale began taking up retail positions as expected, setting the tone for another uptick. CryptoQuant CEO Ki Young Ju wrote on X that the Bitcoin cycle theory is dead. Coupled with present outflows, this leaves most traders in an uncertain position.
The usual whales selling to retail have seen a slight shift to long-term holders. “Last cycle, whales were sold to retail. This time, old whales sell to new long-term whales. Institutional adoption is bigger than we thought. Trading feels pointless. Holders now outnumber traders. My mistake was ignoring this shift in my bull cycle is over call,” he added.
Source: https://zycrypto.com/crypto-whales-dump-over-40000-btc-as-traders-enter-uncertain-zone/