Bitcoin Drops 3% To $95,500: What Is Going On?

Bitcoin (BTC/USD) is currently trading at approximately $95,500, reflecting a 3.4% decrease over the last 24 hours. This decline has raised questions about the market's direction, particularly amidst ongoing whale activity and on-chain data analysis.

What Happened: According to Ki Young Ju, the founder of CryptoQuant, the behavior of whales accumulating Bitcoin is becoming a typical occurrence rather than a rare event that could influence market movements. This growing trend indicates that institutional investors are playing a significant role in the market, while retail investors appear more cautious.

Moreover, recent statistics reveal a notable $7 billion in weekly capital inflows, a clear sign that Bitcoin is currently in a bullish cycle, rather than a bubble. In a traditional bubble scenario, pricing would vastly exceed capital inflows, which would typically raise red flags about potentially hitting a cyclical peak. However, analysts have not yet signaled any concerns of this nature.

Although brief corrections in price, potentially reaching as much as 30%, can happen, they are unlikely to disrupt the prevailing bull cycle. The peak of this cycle appears further off, and predictions suggesting a bear market seem to lack foundational support from the current on-chain data.

Additionally, Ki Young Ju highlighted another trend: whales are increasingly engaging in privacy transactions to build their Bitcoin holdings. Out of the 1.55 million Bitcoin accumulated in 2024 via exchange-traded funds (ETFs), MicroStrategy, and custodial wallets, between 240,000 and 420,000 BTC is currently unaccounted for. This gap suggests that there are large, unidentified buyers quietly accumulating this cryptocurrency.

Why It Matters: The trading community remains optimistic about Bitcoin's price patterns. Crypto trader Jelle shared insights on social media, stating that the recent volatility observed in Bitcoin's price should be viewed as minor distractions in a generally upward trajectory. According to him, these dips are merely speed bumps on the road to further gains, emphasizing the importance of maintaining focus during these fluctuations.

On a related note, crypto analyst Ali Martinez has identified buy signals on Bitcoin’s hourly chart, indicating that a price rebound may be around the corner. This prediction aligns with the overall sentiment among traders who believe in Bitcoin’s resilience and potential for future growth.

Read Next:

• Crypto Analyst: ‘2025 Will Continue To Be a Great Year for Bitcoin’

Image: Shutterstock

This content was partially generated using AI tools and has been reviewed by editors.

Bitcoin, Market, Whales