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Volumes on the crypto market are dropping: is the end of the pump coming?

The cryptocurrency market is experiencing some turbulence, with data provided by Santiment indicating a 17.5% drop in Bitcoin (BTC) whale transactions over the past 24 hours. Whales, individuals or entities with at least $100,000 in BTC ( BTC/USD ), were involved in 20,048 unique transactions per day, up from 24,313 the previous day.

This decline in whale activity occurs in conjunction with a modest decline in Bitcoin's price of 0.6% to $66,750 with a market capitalization of $1.31 trillion. Bitcoin trading volume plunged 42% to around $59 billion in the past 24 hours.

Despite the reduction in whale transactions, the global market remains greedy, with the fear and greed indicator at 88 according to data from CoinMarketCap. Bitcoin recently hit a new all-time high of $69,170 on March 5, when the greed index was at 90, signaling a period of euphoria.

Santiment reports an increase in Bitcoin's total open interest, rising from $10.76 billion to $10.83 billion in the past 24 hours. However, Bitcoin's total funding rate fell from 0.08% to 0.04% over the same period, suggesting an increase in short positions and a growing bet on the price going down.

The market has seen significant liquidations, with more than $80 million in Bitcoin liquidated in the past 24 hours, including $50.88 million in long positions and $28.93 million in short positions, according to data from Coinglass.

Bitcoin's Relative Strength Index (RSI) has risen from 73 to 76 in the past 24 hours, indicating high volatility and likely price fluctuations. Analysts point out that to maintain a bullish outlook, Bitcoin's RSI should cool below the 60 mark.

In parallel, Andreessen Horowitz (a16z), a venture capital firm, announced a shift in its investment strategy, raising $6.9 billion for new funds, with a particular emphasis on artificial intelligence (AI). This change has led to a pause in the expansion of its crypto funds, indicating a priority towards artificial intelligence and other innovative initiatives.

The intersection of AI and blockchain is seen as a transformative opportunity in improving security and transparency across multiple industries. While a16z temporarily forgoes the expansion of crypto funds, this move reflects the growing interest in integrating emerging technologies to shape a more inclusive and transparent future.


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