The cryptocurrency market is experiencing a significant downturn, with Bitcoin's price dropping below its short-term average realized price. This key metric, which acts as a resistance level in bear markets and a support level in bull markets, has been breached, signaling a potential further decline in BTC's value. Whales and entities are selling off their Bitcoin holdings, fueling the price drop.

According to on-chain data, the short-term average realized price stands at $62.6k, a level that BTC has struggled to surpass. With the price currently trading at $61.9k, the likelihood of a rebound seems distant. The lack of buying interest from long-term holders and the absence of significant macro events in the coming days have further dampened market sentiment.

The sell-off has been led by whales and entities, who have transferred large amounts of BTC to exchanges, anticipating a price drop to $57k. This has resulted in a significant increase in selling pressure, with no signs of buying interest from long-term holders. The pessimism in the market is palpable, with even the recent transfer of 50 BTC from a Satoshi-era miner wallet to Binance failing to spark a rebound.

The current market conditions have led to a decline in trading volume, indicating a lack of interest among traders. With multiple key macro events scheduled for next week, the market is expected to remain volatile in the coming days. The potential approval of a US spot Bitcoin ETF could be a catalyst for a rebound, but until then, the market remains bearish.

In conclusion, the Bitcoin price drop below its short-term average realized price has sparked a sell-off, with whales and entities leading the charge. The lack of buying interest and the absence of significant macro events have further dampened market sentiment, making a rebound unlikely in the short term. As the market continues to experience volatility, investors remain cautious, awaiting a potential catalyst to spark a rebound.