Bitcoin Plummets as $1.88 Billion Transfer Sparks Market Fears
Bitcoin faced a steep decline on Wednesday, continuing a sharp drop from the previous day after a significant volume of tokens was moved to a popular exchange, causing concern about a potential major sell-off event.
The world’s largest cryptocurrency saw a sudden fall on Tuesday, erasing recent gains and dropping back below the crucial $60,000 mark. Other cryptocurrencies also experienced a decline alongside Bitcoin.
At 01:40 ET (05:40 GMT), Bitcoin was down 5.8% to $59,481.0, adding to the selling pressure on the digital asset.
Whale Alert, a platform tracking large crypto transactions, reported that around 30,000 Bitcoin tokens, valued at $1.88 billion, were transferred from a cold wallet to the Binance exchange on Tuesday. While it was later revealed to be an internal transfer within Binance’s wallets, the move still unsettled traders as it indicated a significant amount of Bitcoin being deposited to an exchange.
Additionally, a report from Glassnode highlighted a slowdown in net capital inflows into Bitcoin in recent months, potentially contributing to the token’s sideways movement between $50,000 and $60,000. The report also mentioned a decrease in speculative activity around Bitcoin, making spot market actions the primary price driver in the short term.
As Bitcoin remains in a narrow trading range following its record high in March, the overall crypto market is witnessing a decline, with altcoins like Ethereum, Binance Coin, and Dogecoin dropping in tandem with Bitcoin.
With market sentiment shaky and volatility expectations high, investors should remain cautious and monitor the situation closely to make informed decisions about their investments.