Whales are waiting for a deeper bottom, investors are fleeing, bitcoin price is suffering

As cryptocurrencies slowly make their way into the mainstream, macroeconomic trends around the globe are starting to influence price movements more. This was recently illustrated by market turbulence due to border tensions between Russia and Ukraine.

While tensions may soon ease, Bitcoin has lost around 7% of its valuation in the past week alone.

This leads many to believe that these geopolitical issues will continue to pressure the cryptocurrency market.

According to Santiment, further evidence of this trend can be found in the dominance of the term “war”, mentions of Russia and Ukraine on social media and BTC’s respective price action.

Source: Santiment

Notes on the Cryptocurrency Analysis Platform in a post Office on the blog that conflicting news of a possible Russian invasion of Ukraine created “a rather anxious, uncertain moment.” As a result, investors are running away, causing the price to slide.

In fact, bitcoin selling pressure continued to mount throughout the week. The crypto king lost key support at $40,000 after hitting just $38,000 on Feb. 20. Then the whales started selling their stocks too. It’s also possible that they’re hoping for lower bottom to buy back more.

A Twitter user said:

“The selling pressure from the whales has increased. Almost 60% of all BTC and ETH whales were sold in 7 hours.”

Source: AbrahamLincoln

Additionally, the number of addresses on the network holding between 100 and 100,000 BTC has remained steady over the past month.

This further confirms that wealthy HODLers are not interested in buying at current prices while hoping for another downtrend, according to Glassnode data.

Source: Glassnode

In fact, a senior market analyst at Oanda confirmed the same thing in a recent research note.

“Bitcoin is the highest risk asset and the invasion of Ukraine will increase cryptocurrency selling pressure by 10-15% in the near term.”

According to him, the Federal Reserve’s intention to tighten monetary policy could also harm Bitcoin’s long-term growth aspects. Accordingly, “institutional investors can reduce the size of their bets”. Curiously, investors have started to price in at least six rate hikes this year. This also contributed to the downward movement of prices in both the stock and crypto markets.

Accordingly, the confidence of market participants was also affected by these burdens. Bitcoin’s Fear and Greed Index has shifted to “extreme fear” at press time after a brief spell of greed earlier this month.

Source: alternative.me

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