The Bitcoin ($BTC) market is experiencing significant volatility. Over the past seven days, BTC dropped to $78K, rebounded to $94K, and has now dipped again to $82K. As of press time, it is trading above $88K again. As per Ki Young Ju, the CryptoQuant CEO, the whale activity on Coinbase has led to the significant volatility in the Bitcoin market. The executive took to social media to provide details of the current environment of the Bitcoin ecosystem.

Coinbase Whale Activity Drives Latest Bitcoin Price Action

Ki Young Ju deems present market scenario to be considerably slow as no notable on-chain activity indicates any shift in the wider cycle. In addition to this, the market fundamentals are still robust, taking into account rising mining power while uncertainty persists. In line with the recent data, a great portion of the new price action of Bitcoin is reportedly associated with Coinbase whales.

In this respect, the Coinbase Premium Index gauges the Bitcoin price changes existing between Coinbase and the rest of the exchanges. This highlights that high-net-worth investors or institutions utilizing Coinbase were accumulating Bitcoin to elevate the market. Nonetheless, the effect of the above-mentioned whales has led to sell-offs. This resulted in sheer price corrections.

Trending Now: Bitcoin Surges as Fixed Investment Zone Signals Bullish Momentum

The market data points out that Bitcoin initially spiked to the $95K mark before going through a substantial dip to $83,600. The respective volatility goes in line with historical trends showing market corrections and profit-taking activities after whale accumulation. The CryptoQuant CEO asserts that the wider sentiment within the U.S. market plays a vital role in the price movement of Bitcoin. Hence, irrespective of the resilient fundamentals, the deficiency in latest on-chain activity reveals that the market is presently showing a neutral state instead of a bearish phase.

Present Bull Cycle Looks Intact as Institutional Demand for BTC Grows

According to CryptoQuant CEO, the current bull cycle seems intact, however, the market is still experiencing a consolidation phase while investors await additional catalysts. A prominent factor affecting Bitcoin’s trajectory in the future is growing institutional demand. Hence, amid the stagnant retail participation, large entities keep expressing their interest in Bitcoin. Moreover, this could act as a stabilizing factor, averting extreme downtrends.