Bitcoin Price Drop: Investors Beware

In the Bitcoin (BTC) market, the pressure on prices is increasing due to the withdrawal of both large and small investors. Over the last two months, the price of Bitcoin has decreased from 112 thousand dollars to 81 thousand dollars, experiencing a loss of approximately 30 percent in value. During this process, a significant change in investor behavior has been observed.

According to the latest assessments by a CryptoQuant analyst, whale participation in the Bitcoin futures market has weakened, and the interest of retail investors has shown a notable decline. This situation currently restricts the possibility of a strong reversal in Bitcoin's price. The decrease in average transaction size in futures indicates the loss of whale influence. This, combined with the withdrawal of large investors from the market, has led to the dominance of smaller orders, making it challenging to build potential upward momentum.

The CryptoQuant analyst states that indicators calculated from trading volume and the number of transactions have pointed to the same situation for a long time. Similarly, the Futures Volume Bubble Map metric shows that the market cooling has now dropped to neutral levels, and overall activity has decreased further compared to two months ago. It is also observed that the dominant force in recent times, retail investors, has exited the stage. According to the Futures Retail Activity data, the number of active individual participants is classified as low; this indicates that both whales and the retail side are stepping back at the same time, leading to a gradual weakening of liquidity in the market.

The CryptoQuant analyst emphasizes that the existing indicators point to a continuing weakness in Bitcoin futures. The lack of institutional demand, along with the decrease in retail activity, reduces the likelihood of a strong price recovery. As a result, according to the CryptoQuant analyst, unless institutional demand returns or retail interest strengthens again, it seems difficult for the price of Bitcoin to enter a sustainable upward trend.