💣 $2.7 billion in the air... Who sold? And why did the market crash?

The recent drop in Bitcoin was the result of several influencing factors, each playing a role in pushing the market into decline:

🔻 Massive sell-off by a dormant "whale"

One of the major investors who hadn't moved in years sold 24,000 Bitcoins at once worth $2.7 billion, causing immense pressure on the market.

📉 Collective liquidation of positions

Over $900 million in open positions were liquidated within 24 hours, including about $300 million in just one hour. This type of liquidation increases panic and leads to further selling.

📊 Expiration of cryptocurrency options

Monthly options that were about to expire raised concerns among traders, prompting them to reduce or sell their positions to avoid unexpected volatility.

💬 Cautious statements from the U.S. Federal Reserve

Federal Reserve Chairman Jerome Powell made discouraging comments about inflation, leading to a decline in confidence in high-risk assets like Bitcoin.

🧠 Fading momentum after the Jackson Hole conference

Although Bitcoin gained after the conference, those gains quickly faded after whale movements and the absence of new catalysts.