Over the past 24 hours, BTC has experienced an 8% decline, bringing it to approximately $56,990 at the time of this writing—a level not seen since late February. This downtrend has led to Bitcoin’s market cap falling below the $1.13 trillion mark. Santiment data indicates that the amount of Bitcoin supply held in exchanges has risen from 811,810 BTC to 821,740 BTC during the same 24-hour period.
This increase may suggest that some Bitcoin holders are considering selling their assets due to the fear, uncertainty, and doubt prevalent in the crypto market. Such actions pose significant centralization risks for the largest blockchain network. Conversely, Santiment reports that the BTC Relative Strength Index (RSI) has decreased from 52 to 40.
This implies that Bitcoin is undervalued at its current price, while the heightened whale activity may introduce greater price volatility to the asset.