Bitcoin has seen a notable decrease in whale transactions exceeding $100,000 over the past two days, coinciding with a drop in its price below the $63,000 mark.

According to data from Santiment, Bitcoin whale transactions totaled 9,923 over the previous two days as of June 23, marking a significant 42% decrease from the 17,091 transactions recorded in the two days prior. This reduction in whale activity suggests a cautious approach among large Bitcoin holders amid recent market volatility.

The decline in whale transactions comes as Bitcoin's price retraced from highs around $64,685 to $63,422, subsequently slipping further to $62,531 at the time of reporting, based on CoinMarketCap data. This downward movement underscores the sensitivity of Bitcoin's price to market dynamics, including investor sentiment and trading activity.

Ki Young Ju, CEO of CryptoQuant, highlighted that whale traders on derivatives exchanges have shifted to a "risk-off mode." This sentiment shift was reflected in the Inter-exchange Flow Pulse (IFP) turning "red," indicating increased withdrawals of Bitcoin from derivative exchanges. Derivative platforms allow traders to speculate on Bitcoin's future price movements through financial contracts, and reduced activity suggests a cautious stance among traders.

The Crypto Fear and Greed Index, a gauge of market sentiment, has also shifted to a "Neutral" score of 51, the lowest in 51 days. This change coincided with Bitcoin's drop below $60,000 to $59,122, indicating a shift from previous market optimism to a more balanced sentiment among investors.

In addition to reduced whale transactions and shifting market sentiment, spot Bitcoin exchange-traded funds (ETFs) have experienced consecutive outflows over the past six trading days, according to data from Farside. Notably, the largest outflow of $226.2 million occurred on June 13, highlighting investor caution and profit-taking strategies in the current market environment.

Despite these cautionary signals, some analysts remain optimistic about Bitcoin's outlook. Glassnode lead analyst James Check, known as "Checkmatey," pointed to the Bitcoin Sell-side Risk Ratio reaching levels that typically precede market movements. Check noted that potential profits and losses may have been realized, suggesting Bitcoin could be poised to establish a new price range that could reignite market dynamics such as fear, greed, panic, or euphoria.

As Bitcoin continues to navigate through fluctuating market conditions, the behavior of whales and market sentiment indicators will likely play crucial roles in shaping its short-term price trajectory and investor sentiment. Investors and analysts alike are closely monitoring these developments for insights into Bitcoin's broader market outlook.