Bitcoin is navigating a turbulent stretch as major on-chain and derivatives indicators flash a striking divergence in Bitcoin’s short-term and long-term outlook.
According to CryptoQuant, large Bitcoin (BTC) holders have engaged in the largest selloff of their reserves since 2022. In the past 30 days alone, whales offloaded over 100,000 BTC, sending a clear signal of intense risk aversion among large investors.
This selling pressure has significantly penalized the price structure, pushing Bitcoin’s value below US$108,000 and leaving further downside risk if whales continue to trim their positions.
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Adding to the immediate bearish sentiment, data from Glassnode shows that Bitcoin’s futures funding rates are cooling, now at approximately $366k/hour and nearing the neutral threshold of $300k/hour. A drop below this level could signal a fading of demand and a deepening of the current correction.
Still, not all metrics lean bearish. A major bullish signal is emerging from the broader financial markets.
Santiment data highlights a significant divergence over the last two weeks: while Bitcoin’s market value has dropped by 5.9%, the S&P 500 and gold have risen by 0.4% and 5.5% respectively.
Historically, when crypto lags equities and commodities for a sustained period, the probability of a “catch-up rally” increases. The larger the gap, the stronger the argument for an impending crypto bounce. And since early 2022, cryptocurrencies have been highly correlated with equities.
Why This Matters
Whale selloffs and cooling futures signal short-term pressure, but Bitcoin’s divergence from equities and gold could set the stage for a rebound.
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People Also Ask:
A Bitcoin whale selloff happens when large holders, often called “whales,” sell significant amounts of BTC, impacting market sentiment and price.
This is the largest whale selloff since 2022, signaling strong risk aversion from big investors and creating short-term downside pressure.
Cooling Bitcoin futures funding rates show reduced speculative demand, which can reinforce bearish trends during periods of heavy whale selling.
Whale activity can shape short-term price moves, but long-term investors often view selloffs as opportunities if market fundamentals remain strong.
