Bitcoin fell to intraday lows of $63,320 as bullish BTC traders appear to be scaling back their bets on the world’s largest cryptocurrency.
Bitcoin peaked at $73,798 in mid-March but has since fallen about 14%, trading 4.15% lower at $63,806 at press time. Buyers’ enthusiasm for the leading cryptocurrency has waned, owing in part to increased risk aversion caused by anticipated delays in the Federal Reserve rate reduction.
In the most recent episode, data from blockchain analytics platform Lookonchain revealed that approximately $26.3 million worth of BTC was offloaded in the hours leading up to a significant price drop.
This sizable sale, possibly whale activity, has prompted speculation among market observers about the motives and intentions behind the move.
According to Lookonchain, a trader deposited 395 BTC worth $26.3 million to Binance for sale before Bitcoin prices fell several hours ago. The trader had bought 536 BTC worth $35.15 million at $63,729 from April 5 to April 18, then sold it at $66,530 in the last two days, making $1.5 million.
A trader deposited 395 $BTC($26.3M) to #Binance for sale before #Bitcoin prices dropped 4 hours ago.
This trader bought 536 $BTC($35.15M) at $63,729 from Apr 5 to Apr 18, then sold it at $66,530 in the last 2 days, making ~$1.5M.
Address:
18oPtAFWSsEQ7v9HmwVpg485MMG1yEWkEL pic.twitter.com/UUq6V68LRI— Lookonchain (@lookonchain) April 24, 2024
This move has left many in the crypto community wondering: do the so-called “whales” — investors holding large amounts of cryptocurrency — have an insight into the market that others do not?
Some speculations suggest that the timing of the sell-off indicates a prescient move to capitalize on an impending market downturn, suggesting that traders or large holders may possess insights into market conditions. These individuals may have anticipated negative news or events that could trigger a price decline and acted accordingly to protect their assets.
The trader’s sell-off might also be a reaction to technical indicators and market signals, suggesting that large players may have been responding to bearish patterns or signals indicating a potential downturn in Bitcoin’s price. In this scenario, whales may have sold off their holdings in an attempt to mitigate losses or capitalize on short-term trading opportunities.
Regardless, the motives behind the sell-off remain unknown.