Currently, the cryptocurrency world is generally in a state of loss. Meanwhile, the overall cryptocurrency market has dropped by 1%, to $3.29 trillion. The largest cryptocurrency by market capitalization, Bitcoin, has decreased by 0.7% to $104,618.95, with a current market cap of $2.08 trillion.
Although the cryptocurrency fear index remains stable at 55, it indicates a neutral sentiment. So, what has led to the market's downturn?
Whale Activity Raises Concerns
One key reason is that whales have started to sell off. These large investors holding over 10,000 BTC have been in profit-taking mode.
According to expert Willy Woo, some "whales" purchased Bitcoin at ultra-low prices ranging from $0 to $700 as early as 2017. Now, with Bitcoin prices hitting long-term highs, they are beginning to cash out heavily.
Joao Wedson from Alphractal also noted that whales are selling off between $105,000 and $100,000. His charts show that selling pressure is increasing, and the buy-sell ratio has turned negative. This means that there are more sellers than buyers, adding extra pressure to the market.
