The journey of Bitcoin has seen it fluctuate within a relatively narrow band, particularly since it peaked near the impressive $123,000 mark. Recently, it has hovered around the $117,000 to $120,000 range, facing challenges in maintaining a consistent position above the $119,000 threshold.
As the week wrapped up, Bitcoin slipped from this stability, reaching a concerning new low just above $115,000 on Friday, July 25. Current on-chain analytics have shed light on the driving forces behind this recent downturn.
Are Major Investors Cashing Out?
According to a detailed analysis posted on CryptoQuant, a prominent market analyst known as Caueconomy indicated a surge in activity across cryptocurrency exchanges over the last 24 hours. Notably, around 40,000 BTC made their way onto these platforms as of Friday.
This influx is tracked through the Bitcoin Exchange Inflow – Spent Output Value Bands, which monitors how Bitcoin spent outputs transition into centralized exchanges. Such metrics help identify which investor demographics are primarily contributing to these inflows.
Recent charts reveal significant spikes in transaction volumes, aligning with reports that Galaxy Digital transferred 32,448 BTC (valued at over $3.7 billion), with around 22,700 BTC sent directly to exchanges.
Caueconomy noted that these substantial transactions seem linked to profit-taking activities among large market players. “OTC desks have been actively leveraging these exchanges’ order books,” the analyst elaborated.
Centralized exchanges facilitate the buying and selling of cryptocurrencies, making it common for increased coin flow, like Bitcoin in this case, to signal potential selling pressure, as these assets are generally moved to exchanges for liquidation on the open market.
Despite the recent downturn, Caueconomy emphasized that there’s still reason for optimism; Bitcoin remains solidly above the $110,000 level, indicating that net buying interest continues to prevail in the medium to long term.
Current Bitcoin Pricing Overview
At the moment, Bitcoin’s price is approximately $117,346, showing a minor decline of about 0.2% in the last 24 hours. Data from CoinGecko highlights that the leading cryptocurrency is down nearly 1% over the past week.
