Bitcoin Dips as Whales Shift Billions to Ethereum
Bitcoin fell 2.12% to $112,692 over the weekend as significant holders moved their money from Bitcoin to Ethereum.
Quick overview
- Bitcoin fell 2.12% to $112,692 as significant holders shifted their investments to Ethereum.
- A whale sold over 24,000 Bitcoin for $2.7 billion, contributing to a market drop and a temporary low of $110,500.
- Analysts suggest that the sell-off is a typical part of Bitcoin's market growth and not necessarily a negative sign.
- Bitcoin's market share decreased from 61% to 57.94% this month as interest in altcoins, particularly Ethereum, increased.
Bitcoin fell 2.12% to $112,692 over the weekend as significant holders moved their money from Bitcoin to Ethereum. After Jerome Powell’s dovish comments at Jackson Hole, the price briefly rose beyond $117,000 before falling.
Bitcoin is losing value as big investors transfer to Ethereum. Bitcoin fell 2.12% to $112,692 over the weekend as large holders moved their money from Bitcoin to Ethereum. According to Vincent Liu, CIO at Kronos Research, the rise in Bitcoin after Powell’s speech was not due to long-term conviction but rather thin liquidity. Without any additional catalysts, momentum quickly faded as leverage unfolded.
Reports on social media say that a whale sold more than 24,000 Bitcoin over the course of a few days and used the money to buy Ethereum. King from WhaleWire said that $2 billion has been put into Ethereum, and $1.3 billion has already been staked.
Another Bitcoin whale sold 24,000 BTC for $2.7 billion, which made the market drop quickly and created a flash crash. Because of the sell-off, Bitcoin dropped below $111,000 and hit a temporary low of $110,500 on CoinMarketCap.
At the same time as the deal, a lot of people sold their Ethereum and Bitcoin, which cost them about $550 million in stakes. The seller shifted the coins to the Hyperunite trading site, but they still had 152,874 BTC, which is worth more over $17 billion, according to on-chain research. Sani, a specialist on Bitcoin on-chain, said that the whale has owned these Bitcoins for more than five years before the recent behavior.
But analysts suspect that a few whales or big players were involved. Bitcoin’s market share dropped from 61% to 57.94% this month. This is because more people are interested in altcoins after Ethereum set new highs above $4,946.
Analysts also think that the sell-off is a typical part of the Bitcoin market’s growth, even though it is very volatile. Vijay Boyapati, a software developer and cryptocurrency economist, said that whale selling is necessary for Bitcoin to fully become a currency. He said that while significant holders don’t have a lot of Bitcoin, this kind of movement isn’t always pessimistic; it’s just a sign of how the market works. Alex Krüger of Aike Capital says that once the short-term volatility is over and the price of bitcoin goes above important resistance levels between $113,500 and $114,000, it should start going up again.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save