The cryptocurrency market regained momentum after a temporary sudden collapse of Bitcoin, resulting in a loss of over $357 million from long positions. The cause of this event was a single individual: a whale who decided to sell 24,000 Bitcoins, converting a large portion of their capital into Ethereum.
This deal, which involved the transfer of tokens that had been dormant for over five years, triggered immediate selling pressure. While Bitcoin lost its main support, Ethereum received purchases exceeding $2 billion, of which $1.3 billion was already allocated for storage.
Impact of Bitcoin Sales
According to Jacob King, CEO of WhaleWire, the whale transferred 24,000 BTC in a single day, causing a sharp collapse in minutes.
So far, more than 18,000 Bitcoins, worth about $2 billion, have been liquidated, while the remaining 6,000 Bitcoins, equivalent to $670 million, are still waiting to be sold.
Trading volume surpassed Bitcoin's key technical support levels, causing its price to drop to $111,200, according to BeInCrypto data. However, it has recovered slightly and is now trading at $113,514.
The whale's movement also triggered a series of liquidations in the futures market. According to Coinglass data, over $389 million was liquidated in the past four hours.
Of this total, $357 million represents long-term buying positions ($207 million of which is Bitcoin). This selling pressure highlighted how a single player can temporarily destabilize the market.
Most importantly, a lot of capital has not left the cryptocurrency ecosystem: the funds have gone to Ethereum, enhancing its liquidity and reinforcing the narrative of capital rotation towards the second-largest cryptocurrency in the market.
Ethereum reaches an all-time high amid turmoil
Reports indicate that the whale has already converted about $2 billion into ETH, of which $1.3 billion has been reserved in storage contracts, enhancing network security and liquidity.
This move, along with increasing bullish pressure on Ethereum, reinforces its role as a strong alternative in times of uncertainty for Bitcoin.
Analysts differ on the implications of this move. Some interpret it as a strategic shift towards Ethereum, seeking to capitalize on its fundamentals and staking performance. Conversely, others warn of the risk of further depreciation of Bitcoin if the remaining sales occur under conditions of declining trading volume.
Currently, Ethereum is experiencing a slight increase in demand, reaching a new all-time high of $4,946, while Bitcoin is trying to stabilize after its temporary collapse. The outcome will largely depend on whether this whale will liquidate its position and the market's ability to absorb this volume.
The sudden collapse caused by the sale of 24,000 BTC is a reminder of the high volatility in the cryptocurrency market and the power a single player can exert over its course.
While Bitcoin seeks to regain its stability, Ethereum stands out stronger, with an increase in purchases and staking, enhancing its position. The coming days will be crucial in determining whether this phase represents a structural shift in the capital dynamics between the two major cryptocurrencies.
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