The market is being pulled out from under by bitcoin whales as BTC wavers around $19,000
The market is being pulled out from under by bitcoin whales as BTC wavers around $19,000
After fluctuating slightly around $20,000 throughout the long US holiday weekend, Bitcoin slipped below $19,000 on Tuesday as investors increased their threat.
Following a 48-hour decline of 5.74 percent, the biggest cryptocurrency by market capitalization was trading at about $18,800 at midday on Wednesday.
In contrast, despite early Tuesday attempts to rebound, Ethereum fell along with Bitcoin and was trading at $1,521 following an 8% decline, with anticipation for the imminent integration clearly waning. Top Crypto assets including XRP, ADA, SOL, DOGE, DOT, and MATIC lose value, causing the global crypto market cap to fall by 5.61 percent to $969.60 billion.
Why Bitcoin decreased
Bitcoin’s decline below the psychological support of $19,500 has been ascribed to persistent macroeconomic worries, such as soaring inflation and the Fed’s commitment to continue pushing interest rates higher.
Bitcoin is an asset that demands a strong risk-taking attitude, influence, and individuals. Powell suggests that we should not take risks aggressively. This is not the atmosphere to be cyclically positive, according to Alfonso Peccatiello, author of The Macro Compass: “He wants economic activity to slow down, he thinks there will be a pain in the private sector, and monetary policy will stay tight.”
Since August 15th, a substantial number of organizations owning over 10,000 BTC have sold their currencies, according to on-chain data from the cryptocurrency intelligence company Glassnode.
Whales (10k+ BTC) have begun aggressively distributing coins into the range highs around $24500, seizing on any exit liquidity available amid global market instability. Glassnode wrote in the newsletter this week. According to the company, the Market’s Whales’ excess supply looks to have swamped the already weakened demand.
Also Read: The White House is concerned that crypto production may affect climate change initiatives
