Bitcoin sharply declines due to sell-off activity from Satoshi whales, pulling the price down below $117,000.
Large trading activity from an early whale wallet triggered a wave of sell-offs, causing the cryptocurrency market to lose over $400 million in value and skewing investor sentiment.
MAIN CONTENT
An early Bitcoin whale moved 17,000 BTC, causing strong selling pressure.
Distribution of funds to major exchanges led to liquidity and liquidation orders totaling $400 million.
Negative market reactions led to a correction across the altcoin ecosystem.
Bitcoin drops below $117,000 due to whale activity
On-chain analysis experts confirmed that an early whale wallet just moved about 17,000 BTC, creating significant selling pressure that caused the price to drop nearly 6% in a day to around $116,218. This is a strong correction compared to the recent peak of nearly $123,000.
According to data from Lookonchain, the BTC transferred to Galaxy Digital exceeded $1 billion in value, a clear signal of preparation for market distribution.
How do Satoshi whales shake the market?
The distribution process from Galaxy Digital quickly transfers BTC to exchanges like Binance and Bybit, with over $236 million sent out, raising concerns about the risk of further sell-offs. This wallet holds over 80,000 BTC, which could continue to cause significant volatility.
“The timing of this sell-off is extremely sensitive, forcing traders to take profits earlier than expected.”
Cryptocurrency analyst, June 2024
Liquidity wiped out over $400 million due to the domino effect from whales
Data from CoinGlass shows that within just 4 hours after the whale's move, over $400 million in long positions were liquidated, creating a wave of panic across the market. CryptoQuant also noted a spike in profit-taking before the whale executed the trade.
Many large investors are switching strategies from holding long positions to short selling, indicating a prevailing cautious sentiment.
Altcoin reactions to the Bitcoin shock
The altcoin market cannot avoid negative impacts:
Ethereum down 1.4%
XRP and Solana lose nearly 2% in value each
Total cryptocurrency market capitalization falls over 3.2%, the largest one-day decline in the last 3 weeks
Insights from experts
Analysts confirm that this sell-off could mark a short-term peak, testing a key support area that the market has previously reacted positively to.
“Whale activity is always a warning sign; if they continue to distribute, Bitcoin’s price may retest the $112,000 level or even lower.”
Cryptocurrency market expert, 2024
Macroeconomic factors contribute to increased market pressure
The uncertainty from the legal framework in the United States regarding new cryptocurrency laws, along with unpredictable developments from the Fed's interest rate policy and CPI predictions, has led investors to increase profit-taking, reducing liquidity and pushing the market into a more cautious state.
Summary of the reasons for Bitcoin's price drop today
An early Bitcoin whale moved a large amount of 17,000 BTC.
Galaxy Digital is distributing capital to major exchanges.
Liquidation of long positions exceeding $400 million within a few hours.
Market sentiment is changing rapidly, leading to profit-taking and sell-offs.
Next week's developments will determine whether this is just a temporary correction or the beginning of a deeper decline in the cryptocurrency market.
Frequently asked questions
Why did Bitcoin drop sharply today?
The movement of 17,000 BTC by an early Bitcoin whale caused panic in the market and liquidated hundreds of millions of dollars in long positions.
Can the price of Bitcoin continue to drop?
If whales continue to distribute or negative sentiment persists, Bitcoin's price may return to the support level of $112,000 or lower.
How much liquidity was affected in this round?
According to CoinGlass, over $400 million in long positions were liquidated within 4 hours after the whale's large transaction.
How are altcoins affected by Bitcoin's decline?
Ethereum down 1.4%, XRP and Solana lose nearly 2%, dragging down the total cryptocurrency market capitalization by over 3.2%.
What macro factors are affecting the cryptocurrency market trend?
New regulations in the United States, the Fed's interest rate policy, and CPI forecasts create pressure that makes investors more cautious, negatively affecting prices.
Source: https://tintucbitcoin.com/bitcoin-giam-gia-do-ca-voi-ban-thao/
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