Bitcoin (BTC) plunged nearly 5% on Monday, dropping to a low of $64,298 as the new week started in the red. The flagship cryptocurrency traded around the $68,000 level over the weekend but relinquished its gains on Monday as large investors liquidated their holdings and short-term investors continued selling at a loss.
However, market data reveals that losses realized by recent Bitcoin buyers have declined from $1.24 billion to $480 million per day, a sign that a bottom-building phase may be underway. According to exchange data, large holders are dominating the selling, while stablecoin inflows have dwindled, indicating weaker buying power.
Crypto Fear and Greed Index Plunges To Record Low
The Crypto Fear and Greed Index dropped to its lowest recorded levels early on Monday as Bitcoin (BTC) plunged near;y 5% to sub-$65,000 levels. The downturn liquidated over 136,000 traders in 24 hours, with total liquidations jumping to $458 million, a substantial majority of which were leveraged long positions. Bitcoin climbed to $68,000 on Saturday but lost momentum on Monday, dropping to a low of $64,700, towards the bottom of its range-bound channel. The flagship cryptocurrency is trading nearly 50% below its October 2020 all-time high.
As a result of the downturn, Alternative.me’s Crypto Fear & Greed Index fell to a score of 5, indicating “extreme fear.” Meanwhile, Glassnode noted that the seven-day moving average for net-realized losses for recent investors was around $500 million per day, adding that they are still capitulating.
“While the intensity has cooled, the broader regime still signals a market under pressure, with participants in the base formation phase continuing to capitulate.”
Missouri Lawmakers Revive Bitcoin Strategic Reserve Bill
Lawmakers in Missouri have sent a Bitcoin strategic reserve bill to the House Commerce Committee as they look to advance the ongoing legislative process. Lawmakers referred House Bill 2080 to the House Commerce Committee on February 19. The bill will undergo a public hearing, a committee vote, and receive recommendations for changes before it is sent back to the House for further debate. Missouri Representative Ben Keathley introduced the bill, proposing to allow the state treasurer to “invest, purchase, and hold cryptocurrency” using the state’s funds. The bill also allows the treasurer to accept gifts, grants, and donations from Missouri residents and government entities to help fund the reserve.
It also authorizes the treasurer to store Bitcoin for 5 years, after which it can be sold, transferred, or exchanged for other assets. However, it prohibits transactions with foreign entities or entities based outside of Missouri. If the House passes the bill, it will be sent to the Senate. If it passes the Senate, it will be sent to Missouri Governor Mike Kehoe for approval or veto.
Is Strategy Preparing For Its 100th Bitcoin Buy?
Strategy executive chairman Michael Saylor has dropped subtle hints that the Bitcoin treasury firm is preparing to make its 100th BTC purchase. Saylor shared a screenshot of the chart from the StrategyTracker, a move typically preceding an upcoming Bitcoin buy. Strategy has made 99 Bitcoin purchases to date, and has shown no signs of slowing down despite the ongoing downturn and adverse market conditions. The firm has purchased BTC for the past 12 weeks, and another purchase could take the tally to 13. Strategy currently holds 717,131 BTC, purchased at an average cost of $76,027 per coin.
Saylor, a former Bitcoin skeptic, began using the asset as a hedge against inflation, a store of value, and part of a push to maximize and maintain shareholder value.
Bitdeer Liquidates Entire Bitcoin Holdings
Bitcoin mining firm Bitdeer has sold all of its corporate Bitcoin holdings, reducing its treasury balance to zero. The firm disclosed that its “pure holdings,” excluding customer deposits, have fallen to zero BTC. The company’s weekly report reveals that it produced 189.8 BTC during the week, selling the full amount along with an additional 943.1 BTC liquidated from its existing treasury reserves.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) fell sharply on Monday, dropping nearly 5%, giving up its weekend gains as the new week began on a bearish note. The flagship cryptocurrency reached $67,984 on Friday before registering a marginal decline over the weekend to $67,617. However, selling pressure intensified on Monday as BTC plunged to a low of $64,298 before reclaiming $66,000. BTC is currently trading around $66,244, down over 2%.
According to Glassnode data, most Bitcoin holders realized heavy losses earlier this month. A smoothed seven-day measure of short-term holder profits and losses dropped to $1.24 billion per day on February 6. The figure has improved to $0.58 billion, indicating that selling pressure has waned but not completely stopped. Glassnode data reveals that recent buyers are still selling at a loss, but that the market may be shifting into a bottom-building phase.
Data from CryptoQuant highlighted a similar picture. The platform’s weekly report revealed that around 60,000 BTC was being sent to exchanges daily in early February. This figure has dropped to around 23,000 BTC, indicating that selling pressure has cooled in recent days. However, CryptoQuant’s “exchange whale ratio” has spiked to its highest level since 2015, indicating that large holders, referred to as whales, are accounting for most of the Bitcoin supply hitting exchanges. The average deposit size has also increased, confirming that bigger players are driving current exchange activity and price action.
BTC faced considerable volatility at the beginning of the previous week as buyers and sellers struggled to establish control. The flagship cryptocurrency ultimately registered a marginal increase to $68,858. However, selling pressure returned on Tuesday as BTC fell over 2% to $67,466. Sellers retained control on Wednesday as the price fell 1.55%, hitting a low of $65,812 before settling at $66,419. BTC recovered on Thursday, rising nearly 1% to $66,972.
Source: TradingView
BTC reclaimed $67,000 on Friday, rising 1.51% to $67,984. Price action was muted over the weekend as BTC registered a marginal decline on Saturday and dropped 0.50% on Sunday to $67,617. Selling pressure intensified on Monday as the flagship cryptocurrency fell nearly 5% to a low of $64,298. BTC has recouped some of its losses since, and currently trades around $66,000, down 2%.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Bitcoin Price Analysis: BTC Plunges 5% As Persistent Whale Selling Drives Price Below $65,000 was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.