While Bitcoin (BTC) and cryptocurrencies experienced serious declines yesterday evening (GMT+3), all eyes turned to the reason behind it.
Bitcoin traded yesterday $42,950 with a sudden drop of more than 5% from to $40,650 experienced a withdrawal of up to Similar declines were observed in major altcoins along with Bitcoin.
Ethereum price, down 4.5% $2,539 from levels for $2,424 came up. Solana (SOL), Avalanche (AVAX) and Cardano (ADA) It experienced more declines than other major altcoins.
Why is Bitcoin falling?
The decline in Bitcoin price following the opening of the US stock markets created a question mark in minds. Grayscale has been investing thousands of dollars in Coinbase, the largest cryptocurrency exchange in the USA, for a while now. Performing Bitcoin transfer It created movement in price.
But yesterday about 9 thousand BTC If no movement occurs during the transfer, approximately After 30 min The decline started. This situation brought to mind the possibility that the Bitcoins sent were sold.
On the other hand, while the decline continued, another Bitcoin transfer sent to Coinbase attracted attention. An anonymous wallet address, TSI 21.00 to Coinbase in $490 million worth 11,740 Bitcoins transfer realized. The transfer in question deepening price decline led.
On the other hand, it is estimated that Bitcoin, which has gained 50% in value since October despite the declines, has experienced profit sales and miners preparing for the halving have made sales.
Analysts of blockchain data platform CryptoQuant said, “Several indicators on the blockchain indicate that the correction in price that it’s not over yet or at least not yet that a new rally will not start pointing out.” he said.