Bitcoin Plummets Near $41K Amid Whale Activity
By Laxmikant Khanvilkar
Virtual digital assets (VDA) market are overwhelmed by whale movement these days. The unprecedented level of activity has not just impacted price of Bitcoin, but is widely responsible for the gloomy condition in the market.
A whale has moved bitcoin (BTC) worth $665 million on the network, a single largest transaction of this year, causing its price to plummet near one-month low.
Before the whale activity, the BTC was stagnant, trading near $43,000 mark. The largest cryptocurrency by market capitalisation recently traded at $41,223 showing a decline of 3.3% over the last 24-hours.
Since the newly approved spot bitcoin ETFs began trading on Jan. 11, the price of bitcoin – after a very brief spike higher – is now lower by about 13%.
Ethereum (ETH), the second largest cryptocurrency, slipped below $2,500 level. It was recently changing hands at $2,466 losing 2.3%.
Market observers have pointed out that the existing sport bitcoin products across the globe hold more than 864,000 bitcoins, which are likely to make their way to market due to the cost disadvantage. Hence, the current pressure on price as well as overall market is likely to continue.
Broader market reeled under pressure today. Even the recent star performer – the Altcoins, could do little to ease the pressure.
The global crypto market cap decreased 3.1% to $1.63 trillion in the last 24 hours. On the other hand, the total crypto market volume jumped 14.1% to $63 billion. Total volume in DeFi is currently $5.2 billion, and all stablecoins are $57.7 billion, representing 8.2% and 91.6%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 49.6%, showing a decline of 0.1% over the day.
The IC15 index, the barometer of the top fifteen tokens, plunged 3.3% to 54,155.
Meanwhile, the new spot ETF issuers have added more than 68,000 bitcoin in their first week of action. Grayscale’s GBTC, however, has shed roughly 40,000 bitcoin, leaving a net addition of about 28,000 to bitcoin ETFs.
In another interesting development, the Bitcoin miners reserves have plummeted to their lowest point since July 2021, currently standing at 1.83 million BTC, which is approximately worth $78 billion. This is after a decrease of 22,800 coins over the previous year.
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