• Bitcoin fell to intraday lows of $63,320 as bullish BTC traders appear to be scaling back their bets on the world’s largest cryptocurrency
• Data from blockchain analytics platform Lookonchain revealed that approximately $26.3 million worth of BTC was offloaded in the hours leading up to a significant price drop, prompting speculation about the motives behind the move
• A trader deposited 395 BTC worth $26.3 million to Binance for sale before Bitcoin prices fell, having previously bought 536 BTC worth $35.15 million and then selling it for a profit of $1.5 million
Bitcoin has seen a recent drop in price after a sizable amount of the cryptocurrency was suddenly sold off right before the decline. This has led to speculation about whether large Bitcoin holders may have insider knowledge about impending market movements.
Bitcoin Price and Trading Volume Trends
- Bitcoin fell to around $63,320 after peaking at $73,798 in mid-March, a 14% drop.
- Enthusiasm for buying the leading cryptocurrency has decreased amid concerns about potential Federal Reserve rate hike delays.
Significant Bitcoin Sell-Off Precedes Price Drop
- Approximately $26.3 million in Bitcoin was sold off in the hours before a big price decline, according to blockchain analytics platform Lookonchain.
- The sell-off is suspected to be the work of “whales” – crypto investors holding large amounts of coins.
Speculation About Sell-Off Motivations
- Some believe whales sold due to inside knowledge about coming negative news/events that could cause a price drop.
- Others think whales reacted to technical indicators by selling to mitigate losses or profit on short-term trades.
Takeaway
The motives behind the well-timed sell-off remain uncertain. But the incident has fueled speculation about whether large crypto holders have special insights into market conditions.
