Bitcoin’s value drops under $54k as exchange deposits rise
The recent weeks have presented challenges for the Bitcoin price and the wider cryptocurrency market, prompting investors to shift their funds towards exchanges as prices continue to decline. On September 6, Bitcoin (BTC) experienced a significant drop to a one-month low of approximately $53,000, ushering in a period of bearish sentiment across the cryptocurrency sphere. This decline resulted in over $295 million in liquidations for BTC and altcoins just a day later.
Despite these setbacks, Bitcoin managed to make modest gains that propelled the global crypto market cap past the $2 trillion milestone. Presently, BTC has seen a 0.25% increase in the last 24 hours, trading at $54,450. However, even with this rebound, the asset remains 15% below its recent peak of about $64,400 on August 25.
Data from IntoTheBlock reveals that during this period of price decline, over 7,300 Bitcoins valued at roughly $400 million flowed into centralized crypto exchanges after Bitcoin’s price dipped below the $54,000 mark. Additionally, the leading cryptocurrency observed a net inflow of 10,310 BTC, equivalent to over $560 million at the time of reporting.
Whale transactions involving at least $100,000 worth of BTC amassed a total of $68 billion over the past week, as indicated by ITB data. The ratio between large holders’ netflow and exchange netflow currently stands at 1.4%, underscoring the heightened activity of whales compared to retail wallets amidst Bitcoin’s downward trend.
It is noteworthy that retail addresses constitute 88.4% of all Bitcoin holders, with less than 12% of the total BTC supply residing in whale wallets, according to ITB’s findings.
In summary, the recent price fluctuations in the crypto market, particularly in Bitcoin, have led to increased activity on exchanges as investors navigate the evolving landscape of digital assets. The interplay between whales and retail investors provides valuable insights into market dynamics and sentiment, shaping the narrative of cryptocurrency trading in the current climate.
