Bitcoin Takes a Hit: A 3% Drop in 24 Hours Sparks Concerns
It’s been a rough day for Bitcoin, with the cryptocurrency plummeting nearly 3% to around $115,376 in the last 24 hours. This significant drop marks its lowest point in two weeks, leaving investors and enthusiasts alike wondering what’s behind the sudden decline.
The Decline: A Closer Look
According to recent reports, the downward trend started on July 24th, with Bitcoin’s value falling from a high of around $119,291 to its current price. This translates to a loss of almost $4,000 in just one day. But what’s driving this shift? Some experts point to large Bitcoin owners, who may be cashing out and benefiting from the profits.
A recent analysis by Lookonchain, a blockchain analysis platform, revealed that Galaxy, a prominent asset management company, transferred nearly 30,000 BTC from its wallets in a single day. The majority of these coins, valued at around $1.15 billion, were sent to central exchanges like Binance and OTC trading platforms. Despite this significant transfer, Galaxy still holds a substantial 18,504 BTC, worth approximately $2.14 billion at current prices.
Market Reactions and Concerns
The speed and size of these transfers have raised concerns about potential further sales in the near future. Valentin Fournier, a senior research analyst at BRN, commented on the price movement, noting that this is the second day of losses. He believes the market is cooling down after an overheated rally, with trading impulses slowing down and new ETF inflows weakening.
Fournier views this as a potentially healthy reset, especially after an excessive long positioning has been washed out. However, the downward pressure has not spared other cryptocurrencies, with large assets like XRP, Solana, and Dogecoin experiencing modest losses in tandem with Bitcoin.
A Rare Exception: Ethereum
Ethereum, on the other hand, has bucked the trend, rising by around 2% to $3,722. Dean Chen, a crypto analyst at Bitunix, attributes the wider market withdrawal to profit-taking behavior after an extended rally. He believes the move is likely a liquidity-driven event aimed at unwinding exaggerated long positions.
Chen notes that, from a structural perspective, prices above the most important levels remain well-supported, without being overly observed. As the market continues to evolve, it’s essential to keep a close eye on these developments and their potential impact on the cryptocurrency landscape.
