Despite adopting a bullish stance after Powell's speech at Jackson Hole, the price of Bitcoin collapsed on Sunday night. With a drop of 2.5% in 24 hours, BTC is currently trading at $111,443 with a market capitalization of $2.22 trillion.
Even the main cryptocurrency market is following this correction, losing nearly 2% of its total market capitalization. ETH, SOL, and the rest of the altcoins are in a similar downward trend, suggesting a cautious attitude among investors.
It is worth noting that cryptocurrency holders from last week were not entirely favorable for market performance. Starting with the FOMC minutes and other news, the token price plummeted, but some, like Jerome Powell's speech at Jackson Hole, temporarily saved gains until everything collapsed today.
Today, Bitcoin fell again, and investors associated it with Powell's speech theory, adding the market drops after the Jackson Hole event according to historical data. While this may be one of the reasons, the massive sell-off by crypto whales drove the bearish trend, especially those from the Satoshi era.
The main whale is an individual who sold 24,000 BTC for over $2.7 billion hours ago, which crashed the price of Bitcoin by $4 billion in minutes. Additionally, $45 billion in market capitalization was lost due to this massive sell-off in a matter of minutes.
Another OG is in the BTC exchange, where in the last 5 days they have deposited nearly $2.7 billion in tokens on Hyperliquid for sale and have bought $2.2 billion spot, according to Lookonchain.
Willy Woo, a cryptocurrency analyst, points out that these original BTC holders are responsible for the price drop, as they bought BTC at $10 or even less. However, currently, someone would need $110,000 or more to absorb the sales they are making. Therefore, a bullish movement is more difficult.
While the impact is already disastrous, experts fear that much more similar actions could occur in the future. Interestingly, BTC still holds the largest dominance in the cryptocurrency market, and experts like Michael Saylor predict a 30% year-over-year increase, but capital rotation persists at the closing of this edition.
As a result, even spot BTC ETFs suffered outflows of $1.17 billion last week, the second largest outflow since their inception.
