Weird on-chain activity was spotted prior to biggest market drop we saw since July
Over the past 10 days, the network noticed suspicious activity of bitcoin whales, who have were taken Around 15,000 BTC. The most notable difference between regular coins and the amount transferred is the date they were last spent. Almost all the coins belonged to investors who bought BTC back in 2014.
Did ancient whales cause the drop?
Technically, a one-time injection of 15,000 BTC on the market could have caused a major plunge of the first cryptocurrency and issues with liquidity. But despite the significance of the sum, it could not have been the sole reason for the plunge BTC took yesterday.
According to CoinGlass, over $350 million has been liquidated in the cryptocurrency market in the past 24 hours. While this amount may seem large and significant, the gradual sell-off of 15,000 BTC in the market may not lead to such a huge increase in liquidations.
Reportedly, whales moved most of those ancient funds to Kraken centralized exchange and most likely sold them ahead of the large price drop. Meanwhile, most experts believe that the main reason behind the correction is tied to the upcoming rate hike and the continuous strengthening of the monetary policy.
What’s next for the first cryptocurrency?
For Bitcoin, it is consolidating at the July level and has not yet turned lower. Fortunately, the current price level is matching a strong psychological and historical support level, which could keep the first cryptocurrency afloat.
The majority of sentiment indicators returned to extreme fear, and Bitcoin’s Relative Strength Index shows that the asset has already become oversold but can still drop even lower if a new source of selling pressure appears on the market.
