Over the past 3 months, Bitcoin (BTC) has reached the $18,600 price level for the first time. The level, which it has not visited since 2020, rocked the market hard, accompanied by a massive sell-off.
Why is the Bitcoin price falling?
According to experts, the number of whales depositing their Bitcoins on the stock market has increased drastically. The data shows that about 90% of deposits on exchanges come from whales. Cryptoquant CEO Ki Young Ju stated that about 15,000 Bitcoins were moved over the course of ten days. Some BTC was transferred to Kraken. Tradingview data shows that Bitcoin was trading at $20,000 at the start of the day. The $18,600 bottom it later reached is iconic for BTC as it was the highest price during the 2017 bull market.
However, the Bitcoin price has lost as much as 6% in the last 24 hours. Experts state that just before the BTC price fell, the exchange whale rate rose. A sharp increase implies that whales are actively accumulating Bitcoin on exchanges. Meanwhile, Cryptoquant CEO Ki Young Ju added that the rate is still high and increasing. This is a worrying topic, but still typical bear market behavior.
Liquidation of a large amount of long positions
On-chain data shows that the amount of deposits on the exchange is increasing. However, the market’s overall value has seen more than $360 million in liquidations in the last 24 hours. Coinglass reported that the largest single liquidation was recorded on the Okex exchange, worth $2.57 million. According to the data, more than $125.6 million has been liquidated from Bitcoin in the last 24 hours. Approximately $107 million worth of BTC has been identified in the long position.
Bitcoin (BTC) is currently consolidating to break $19,000. Meanwhile, 24-hour trading volume increased 7% to $38.6 billion. The total value of the market has also dropped over 4% in the last day. It currently stands at $916 billion.
SHIB melted as Bitcoin plummeted, investors now looking to September
Shiba Inu’s trend token SHIB saw some key initiatives in August as demand continued to pour in. While Bitcoin was falling, the developments that kept Shiba afloat were metaverse projects. From metaverse developments to adoption rate it all seems to be lining up for this meme coin. But apart from its low price.
The total supply of Shiba Inu is about one quadrillion. By burning tokens, the number in circulating supply decreases over time and should, in theory, raise the price of SHIB. However, this was not actually the case. Both August and September saw some heavy developments in this segment. Talking about the latter, over 300 million Shiba Inu tokens have burned since the beginning of September. In just 24 hours, 35 transactions destroyed a total of 102,111,340 tokens from Shiba. This represents a 65% increase in burn rate, according to the Shibburn official website.
In the past 24 hours, there have been a total of 102,111,340 $SHIB tokens burned and 35 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. #shibarmy
— Shibburn (@shibburn) September 6, 2022
However, the most significant daily burning ever occurred on August 31, when 455,699 SHIBs were burned in 24 hours. To say the least, the token-burning community continued the momentum compared to the previous month.
Here, 528 transactions destroyed a total of 3.7 billion units of Shiba, which used token burns to dilute its circulating supply and increase scarcity.
As you follow on Kriptokoin.com, Shiba Inu (SHIB) is currently trading at $0.0000121, down 3.49% daily.
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