Bitcoin Drops Below $77,000 as Whale Wallets Rise

Bitcoin slipped below $77,000 over the weekend, extending a four-day losing streak and erasing roughly 6% of its value for the week. At the time of reporting, the cryptocurrency traded near $76,819, down about 0.18% on the day.

On-chain data show growth among large holders. Addresses with at least 100 BTC increased to 20,229, up 11.2% from 18,191 a year earlier. Each such address now controls about $7.7 million worth of Bitcoin. Analytics from Santiment note these addresses are commonly associated with institutions, corporate treasuries and long-duration holders.

Santiment’s data also indicate a shift in retail sentiment: bearish commentary about Bitcoin now exceeds bullish commentary for the first time since April 21. In a post, the firm wrote, “Since crypto historically moves opposite to the crowd’s expectations, this level of bearishness from retail is a great sign. As small traders sell off their coins as a reaction to this mild downswing, probabilities of a rebound are heightened while most people expect a further drop.” Santiment added that rising counts of large wallets are often interpreted as continued confidence among major stakeholders.

Research firm Delphi Digital highlighted the BTC/gold ratio as a separate signal. The ratio has recovered about 46% from February lows and sits near 17.6, tracking Bitcoin’s price relative to gold. Delphi noted gold has fallen roughly 18% from its January peak while Bitcoin has climbed from the mid-$60,000s. A market strategist at the firm forecast that the weekly 9- and 21-period exponential moving averages of the ratio could cross in a bullish pattern in early June; past similar crossovers preceded Bitcoin rallies of 148%, 641% and 148%.

Macro events could affect whether these on-chain and cross-asset indicators align with price moves. Newly confirmed Federal Reserve Chair Kevin Warsh will preside over his first Federal Open Market Committee meeting on June 16-17. Markets assign about a 1.2% probability to a rate hike at that meeting. Traders are also monitoring inflation readings and geopolitical developments involving Iran.

For context, the BTC/gold ratio compares Bitcoin’s market price with the price of gold to show relative strength between the two assets. Wallets holding 100 or more BTC are commonly used as a proxy for institutional or long-term holders; changes in their numbers are used to track large-scale accumulation or distribution.