- Despite the recent Bitcoin price dip, many see it as a buying opportunity, though Santiment advises waiting for market enthusiasm to settle.
- Spot Bitcoin ETFs showed significant outflows, and a major Bitcoin whale has incurred substantial losses due to the ongoing volatility.
Despite the recent dip in Bitcoin’s price, many in the crypto community see it as a potential buying opportunity. However, on-chain data provider Santiment advises waiting for market enthusiasm to settle.
Market Sentiment and ETF Outflows
On July 3, spot Bitcoin ETFs experienced net outflows of $20.5 million, signaling a lack of confidence among institutional investors. This sentiment is further evidenced by a significant Bitcoin whale who deposited an additional 1,800 BTC ($106 million) to Binance, even as Bitcoin’s price continued to decline.
Bitcoin’s Price Slump
Bitcoin’s price has been on a downward trajectory, dropping 5% in the last 24 hours and slipping below $59,000. This has broken a critical support level of $60,000, with the next support level at $57,000. The primary concern for investors now is whether to buy the dip or wait for further declines.
Santiment’s Perspective
Santiment reports heavy sell-offs in both Bitcoin and altcoins, reaching near two-month low levels. Ethereum, too, has seen a significant price drop, falling below $3,200 despite the upcoming launch of spot Ethereum ETFs on July 15.
However, Santiment suggests that while the crypto community views this as a buying opportunity, it’s prudent to wait for the initial wave of enthusiasm to pass. The ideal time to purchase, according to Santiment, is when traders become skeptical and impatient.
Impact on Altcoins and ETFs
The recent BTC price drop has triggered aggressive liquidations, particularly among traders who bought in around the $60,000 mark. This pattern is also reflected in altcoins like Ethereum and Solana, which have seen even steeper declines.
In the ETF market, Grayscale’s GBTC saw $27 million in outflows, while Fidelity’s FBTC was the only ETF to record inflows, totaling $6.5 million. All other ETFs saw no inflows, highlighting the market’s cautious stance.
Bitcoin Whale Activity
Amid the volatility, Bitcoin whale activity has surged. A major Bitcoin whale recently deposited 1,800 BTC to Binance, following a week where they transferred a total of 5,281 BTC at an average price of $61,196. This whale now holds 6,068 BTC but has suffered a loss of $20 million in the recent trades.
While the current market dip presents a potential buying opportunity, it is essential for investors to exercise caution. Waiting for the market to stabilize and for trader sentiment to become more skeptical may provide a more favorable entry point. The actions of Bitcoin whales and the movement of ETFs will be critical indicators to watch in the coming days.
