Data Uncovers Main Reason Behind Bitcoin Dump to $64,000

bitcoin

The price of bitcoin has dumped significantly within the past two weeks as Whales sold bitcoins worth more than $1.2 billion

Bitcoin’s recent rollercoaster ride, marked by high volatility and price instability, has left investors in disarray. With its value plummeting to $64,000, the situation has become a cause for concern, emphasizing the need to assess its short-term movement carefully. 

Seasoned Bitcoin holders, often called ‘whales,’ have wielded their influence in the market by offloading a significant portion of their holdings. Their moves have not only impacted the price of bitcoin but also had a ripple effect on bitcoin miners and ETFs, which have experienced negative days as holders divest their positions with no signs of replenishing amidst the bearish trend. 

Bitcoin Whales Sold Over $1.2 Billion BTC

Onchain data from analysis firm CryptoQuant reveals that bitcoin whales have cashed out more than $1.2 billion within the past two weeks, contributing to the bitcoin price plummet. 

In a post on X (Formerly Twitter), Ki Young Ju, CEO and founder of CryptoQuant, revealed that the sale was likely conducted through brokers, not on the open crypto market. He further cautioned that the sale has yet to impact the market entirely. If the substantial amount sold isn’t purchased over the counter, “brokers may deposit BTC to exchanges, impacting the market.” This stark warning serves as a reminder to bitcoin investors of the potential future effects of the sale, underlining the need for caution in these uncertain times.   

Furthermore, On-chain analyst Will Clemente has warned that bitcoin is approaching the $63,800 support, marking short-term holders’ cost basis. If the market trades below the range for a few consecutive days, this will indicate a significant downward trend.  

Bitcoin Miners and ETFs Join Bearish Trend

Following the just-concluded Bitcoin halving, miners have amplified the downward trend. Many weak and early ones recently sold about $550 million in an attempt to cover losses and mining expenses. This move has affected the miners and sent shockwaves through the market, underscoring the broader implications of the price drop.

Moreover, Bitcoin Exchange-Traded Funds (ETFs) have outflowed more than $700 million within the last four market days, with FBTC and GBTC leading the sale, further dumping the market.