Bitcoin Drops Toward $60,000 as On-Chain Transfers Near Record, Signaling Massive Shakeout

Bitcoin has plunged toward the $60,000 level, while on-chain data points to asset transfers approaching historic highs, indicating a massive change of hands is underway.

AMB Crypto reported on June 7 that crypto analyst Darkfost said Bitcoin transaction counts are nearing record levels, a sign of large-scale redistribution across the market. Over the past three weeks, Bitcoin has fallen from above $80,000 to around $60,000, retesting its February low for this year.

Based on the 30-day moving average, Bitcoin transaction counts are now running at about 640,000, close to the 660,000 recorded during the September 2024 market correction, Darkfost said. Surges in transaction activity typically emerge during strong bull markets or near market tops. This time, however, they are appearing alongside a sharp price decline.

The combination of high transaction volume and falling prices may signal capitulation among market participants, he said. If so, one of the most significant Bitcoin ownership transfers in the asset's history could be unfolding.

Selling pressure across the broader market remains intense. Strategy recently posted its largest unrealized loss on record, while short-term holders have been selling at a loss. That has also fueled views that capital is rotating out of crypto and into traditional financial markets.

Miners' profitability is also deteriorating rapidly. CryptoQuant data showed Bitcoin's mining cost has recently held at about $43,000, but miners' profit margin has dropped to roughly 47% from about 98% as the token slumped. Daily hash rate fell about 33% over the same period.

Bitcoin transfers from miners to exchanges have also increased sharply. CryptoQuant said miners' exchange inflows recently rose to about 10,000 BTC to 12,000 BTC a day. It added that investors should remain cautious until those flows return to the typical range of 1,000 BTC to 3,000 BTC a day.

Darkfost said selling pressure has yet to fully subside, making it too early to declare that the market has bottomed. If extreme fear persists, Bitcoin could fall further to around $51,000.