Bitcoin’s Bearish Sentiment Rising
Analysts at Santiment have noted a significant decline in positive sentiment towards Bitcoin, with funding rates indicating a surge in bearish bets. Despite a recent bounce in the crypto market, traders, particularly on Binance, are increasingly opening short positions in anticipation of Bitcoin’s price dropping again. This shift in sentiment has led to a decrease in bullish commentary on Bitcoin, with traders betting against a short-term rise in BTC’s value.
Bitcoin Price Correction and Exchange Withdrawals
Following Bitcoin’s surge to $66,000 earlier in the week, the price has corrected to around $63,380, representing a 2.5% decrease in the past 24 hours. Analysts at Bitfinex had predicted this correction, highlighting potential selling pressure. Interestingly, Bitcoin holders have recently withdrawn significant amounts of BTC from exchanges, totaling billions of dollars. These withdrawals have coincided with price jumps in the past, suggesting that holders are hodling their assets, which has historically positively impacted Bitcoin’s price.
Impact of Exchange Movements on Bitcoin Price
The movement of BTC from exchanges by holders has had a notable effect on Bitcoin’s price dynamics. Recent large withdrawals from exchanges have indicated a strong hodling sentiment among holders, potentially leading to a positive impact on the cryptocurrency’s value. Despite short-term fluctuations, the overarching trend of holders withdrawing BTC from exchanges suggests a bullish sentiment towards Bitcoin among long-term investors.
