Bitcoin Price Update

Bitcoin trades at $86,930 on Tuesday, dipping below the $90,000 support level for the first time in over three months. This drop has generated negative sentiment among traders, leading to increased fear, as indicated by the Crypto Fear & Greed Index.

Amid this Bitcoin (BTC) price correction, institutional investors are showing a new trend of net outflows from U.S.-based Spot Bitcoin ETFs, raising concerns about the state of the market. Questions are arising about whether institutional investors are giving up on Bitcoin and if the BTC bull run is over. An investigation into on-chain and technical indicators aims to clarify the situation and identify the next big Bitcoin trade.

Table of Contents

• Bitcoin supply on exchanges grows while whales dump BTC
• Institutional investors lose interest in Bitcoin, should you be worried?
• Are whales dumping Bitcoin?
• The next big Bitcoin trade
• Expert commentary on where Bitcoin is headed next

Bitcoin supply on exchanges grows while whales dump BTC

After reaching the $100,000 milestone and an all-time high of $109,000, Bitcoin faced a decline due to various factors including reduced institutional interest, U.S. macroeconomic developments, and increased supply on exchanges.

Data from Santiment reveals that while supply on exchanges is climbing, supply held by whale wallets is decreasing, indicating that entities may be moving BTC to exchanges after a period of accumulation. A decline in non-exchange Bitcoin holdings suggests expectations of further price declines.

Current Metrics

BTC supply held by funds is trending down, consistent with the negative outflows observed in Bitcoin funds. This paints a concerning picture for institutional interest in Bitcoin.

Institutional investors lose interest in Bitcoin, should you be worried?

According to CoinShares, institutions have pulled $595 million from Bitcoin funds this month alone. The significant outflows in Bitcoin funds starkly contrast the inflows seen in assets like Ethereum, Solana, and XRP. These data points indicate a bearish trend for Bitcoin.

MicroStrategy’s stock performance correlates with Bitcoin, and recent analysis suggests that investors underestimated the stock’s value, potentially leading to significant losses.

Are whales dumping Bitcoin?

Santiment data shows a decline in whale transactions, especially in segments of $100,000 and $1 million or more. The ongoing profit-taking by whales has contributed to further downward pressure on Bitcoin’s price, as increased selling activity typically indicates a bearish market sentiment.

The next big Bitcoin trade

Bitcoin recently broke below the crucial $90,000 support. As it trades at $88,976.24, several key support levels are identified: $85,072, $81,500, and $76,900. A critical downturn could push Bitcoin to lower levels if not halted.

Markus Thielen from 10x Research highlighted technical indicators suggestive of an impending correction unless confirmed otherwise by volume trends.

Expert commentary on where Bitcoin is headed next

Ilman Shazhaev, CEO of Dizzaract, discussed the impact of a hack on Bybit and the market’s current negative sentiment despite recovery actions by the exchange. Meanwhile, Dr. Sean Dawson from Derive.xyz noted that the continued outflow of institutional funds and macroeconomic issues has reduced the probability of Bitcoin reaching $100K by March.

Recent developments led to a slight increase in Bitcoin’s implied volatility, indicating heightened market uncertainty.

> Disclaimer: This article does not provide investment advice and is for educational purposes only.