Unveiling the Bitcoin Price Plunge: The Role of Major Crypto Whales
As Bitcoin’s value dips below the $110,000 mark, the crypto community is abuzz with speculation regarding the causes behind this significant decline. While initial assessments blamed broader bearish market conditions, a closer examination of on-chain data reveals a simpler, more direct cause: substantial sell-offs by prominent Bitcoin holders.
Major Bitcoin Whales Offload Over $1.7 Billion in BTC
According to insights from Lookonchain, a leading on-chain data analysis platform, the recent drop in Bitcoin prices can be attributed to massive sell-offs by significant stakeholders. These influential players have begun moving large quantities of Bitcoin to cryptocurrency exchanges, seemingly to capitalize on current price levels.
One of the most notable sellers is an early Bitcoin whale, known by the pseudonym 1011short, who transferred a staggering 13,000 BTC, valued at approximately $1.48 billion at the time, into various exchanges including Binance, Kraken, Coinbase, and Hyperliquid. This activity commenced on October 1, marking the beginning of a notable trend.
Another significant player, associated with early Bitcoin adopter Owen Gunden, also initiated large-scale transactions. Gunden’s wallet saw the movement of 3,265 BTC, equating to $364.5 million, into the Kraken exchange. These transfers, which began on October 21, have persisted into November.
The influx of these substantial Bitcoin quantities into exchanges has coincided with a noticeable downturn in Bitcoin’s price, indicating that these large-scale sell-offs are contributing to the current market dynamics. However, the extent and duration of these sell-offs remain uncertain, as Gunden retains a substantial holding of over $700 million in Bitcoin.
Impact of Sell Pressure on Bitcoin’s Market Trajectory
The ongoing decline in Bitcoin’s price suggests that the significant daily trading volume, reported by platforms like Coinglass, is largely driven by sellers. Should this trend continue, and if major Bitcoin holders persist in their sell-offs, Bitcoin’s price could potentially plummet further, approaching the $100,000 threshold.
Despite the prevailing negative sentiment and increasing predictions of a Bitcoin price peak, this situation may be setting the stage for a pivotal turnaround. A sharp rebound from current levels could lead to a short squeeze, potentially triggering a cascade of liquidations that might reshape market dynamics.
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