Bitcoin Price Plummets After Large Investor Sells 3,500 BTC, $310 Million Lost in a Day
Bitcoin has been facing notable volatility recently, with a continued downward trend that started in the previous month. CryptoSlate’s data reveals that Bitcoin’s price has decreased by around 6% within the last 24 hours, dropping below the $58,000 threshold to reach as low as $56,900.
Observers in the market have issued warnings that if the substantial selling pressure persists, this decline could signal a potential drop in the value of the primary digital asset to the low $50,000 range. Earlier today, Lookonchain, a blockchain analyst, identified a whale that offloaded 3,500 BTC for $206 million over five hours through the Binance exchange.
Markus Thielen, the founder of 10x Research, highlighted a decrease in buying activity alongside escalating selling pressures. He pointed out that Bitcoin breached critical technical and psychological levels at $60,000, a crucial juncture for miners and Spot ETF buyers. Notably, this marks the bottom of its trading range over the past three months.
Thielen expressed concern that price declines could intensify as support levels are breached, leading sellers to seek liquidity urgently. He emphasized that only uninformed traders would be willing to purchase at this stage, cautioning that breaking this support could trigger a sharp decline to the low $50,000s.
Some analysts attribute the drop in Bitcoin’s price to low market liquidity and apprehensions regarding the upcoming Mt. Gox BTC payout, which is anticipated to distribute approximately $9 billion worth of Bitcoin to creditors. Additionally, crypto exchange BloFin issued a research note highlighting the high downside risk for Bitcoin, especially in the event of an unforeseen occurrence.
The decline in Bitcoin’s value has resulted in significant losses for crypto traders engaged in speculative market activities. Coinglass data indicates that over 110,000 traders suffered losses totaling about $310 million in the last 24 hours, predominantly from long positions.
Bitcoin traders experienced the most substantial impact, with losses amounting to $94 million—$82 million from long trades and $12 million from short trades. Ethereum also faced notable liquidations, reaching approximately $72 million.
The largest individual liquidation occurred on HTX (formerly Huobi), involving a $10 million long position on the leading crypto asset. These developments underscore the ongoing challenges and uncertainties within the cryptocurrency market, emphasizing the need for caution and strategic decision-making among traders and investors.
