Bitcoin Drops Below $66K as Exchange Activity Surges Amid Market Downturn

Bitcoin (BTC) has faced a bearish momentum, causing its price to fall below the $66,000 mark after three days of consolidation. 

As of the time of writing, Bitcoin was trading at $65,699, marking a 0.73% decline in the past 24 hours, according to CoinMarketCap data. This drop has also impacted its market capitalization, which has fallen to the $1.3 trillion mark for the second time this month. Despite the decline in price, Bitcoin’s daily trading volume has seen a substantial increase, rising by 101.08% to reach $36.12 billion.

According to data from market intelligence platform Santiment, Bitcoin’s exchange inflow has surged, increasing by 137% over the past day. The inflow has risen from 19,172 BTC to 45,356 BTC. Alongside this, the data indicates a rise in Bitcoin leaving exchanges. The BTC exchange outflow has surged by 119%, moving from 19,871 BTC to 43,493 BTC in the past 24 hours. This heightened activity on exchanges suggests a period of increased volatility and trader caution in the market.

Source: Santiment

Supply on Exchanges Increases

Santiment’s data also shows a rise in the overall Bitcoin supply on exchanges. The supply has increased from 937,240 BTC to 939,230 BTC, reflecting a net inflow of 1,863 BTC over the past day. This increase in exchange supply indicates that more investors are moving their Bitcoin onto exchanges, possibly preparing to sell amid the bearish trend. 

Moreover, the broader cryptocurrency market is experiencing a downturn, with the global crypto market capitalization declining by 2.6% in the past 24 hours to hover at $2.485 trillion, according to CoinGecko.

Data from CoinGecko reveals that 96% of the leading 300 cryptocurrencies, including popular meme coins, are experiencing losses. This widespread decline across the crypto market underscores the current bearish sentiment affecting digital assets. 

According to Santiment data, Bitcoin’s relative strength index (RSI) is currently at 59, indicating that the cryptocurrency is slightly undervalued at this time.

Shifts in Wallet Activity

In a related development, Santiment has noted a shift in Bitcoin wallet activity. Bitcoin holders have experienced their largest three-day drop in non-empty wallets since just before the March 14th all-time high. This trend suggests that many traders are liquidating their holdings in response to the recent price declines, driven by fears of further drops. 

Bitcoin holders have just had their biggest 3-day drop in non-empty wallets since just prior to the March 14th all-time high. Unlike then, BTC has been sliding, provoking traders to liquidate for fear of further drops. Meanwhile, Ethereum wallets keep growing in number. pic.twitter.com/UIfXLkJ1HH

— Santiment (@santimentfeed) June 18, 2024

In contrast, Ethereum wallets have continued to grow, highlighting a diverging trend between these two major cryptocurrencies amid Bitcoin’s volatility.

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