Bitcoin (BTC), which has been trading at a high of over $124,000, experienced a major correction in the past week. It is down more than 10% since its record-breaking peak. Even though the market has experienced a downturn, there are still many who remain positive about further cryptocurrency gains.
David Bailey, CEO at Bitcoin Magazine crypto advisor Donald Trump, the president, has said that the price fluctuation is due to large investors. “whales.”
Bitcoin sell-off triggered by whales?
Recently, a social media site has been criticized for its lack of transparency. post Bailey stated on X (formerly Twitter) that the two most prominent whales were to blame for this recent drop, as they had reportedly liquidated 80,000 BTC each and respectively.
NewsBTC reported Binance was suspected last week of orchestrating a sell-off despite the record-breaking inflows to Bitcoin ETFs and increasing interest by public companies.
DeFitracer claimed that Binance may be utilizing Wintermute as a strategic market maker to create a downward trend for retail investors. Binance could profit from the liquidations of futures markets by using this strategy.
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Arkham Data Analysis recently revealed a new layer in the market’s dynamics. disclosed A whale who owns over $5 billion of Bitcoin began purchasing Ethereum (ETH), transferring $1.1 billion BTC into a new wallet in order to facilitate the transactions.
Bailey has not revealed the identity of any whales but did say that there is one. “down,” While the second is on its way to a similarly fated end,
It is possible that the Bitcoin price will regain momentum once these sales are over. This would mean that it could reach Bailey’s $150,000 target per coin. That represents a 36% rise from its current levels.
BTC is now held by public companies who hold over 6% of the supply
The price stability of Bitcoin is affected by the increasing involvement of public companies on the crypto market.
According According to JPMorgan’s global market strategist Nikolaos Pantigirtzoglou, the corporate treasuries hold more than 6% of Bitcoin’s total supply. This is a private sector form of quantitative easing in crypto markets.
Analysts have noted that an increase in Bitcoin sales by corporate treasurers has resulted in a reduction in cryptocurrency volatility. This may make this asset more attractive for investors.
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Panigirtzoglou emphasized that, in just July alone public companies including Strategy As of January 2018, (previously MicroStrategy) accounted for almost two thirds of Bitcoin sales among major buyers. This includes exchange-traded products and government entities.
This influx of institutional investors may change the face of Bitcoin trading and ownership, since reduced volatility could make BTC more attractive as an alternative investment, especially when compared to gold.
At the moment of writing, Bitcoin is valued at $110900. It represents a slight increase of 2% over the past 24 hours.
Chart from TradingView.com, image from DALLE
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Source: www.newsbtc.com
