In the last 10 days, the Bitcoin network has witnessed the suspicious transactions of whales. According to it, the whales’ suspicious activities included moving 15,000 BTC. However, it was the prices and dates at which the assets were acquired that cast doubt among the normal BTCs and the whales carried by the whales. Almost all of the BTCs moved belonged to investors who bought BTC in 2014. Meanwhile, former BitMEX CEO Arthur Hayes announced that he did not sell assets amid these events and the price drop.
Did whales cause the Bitcoin price drop?
Technically, 15,000 Bitcoins entering the market at once would have caused major problems. These potential issues included a massive drop in the price of the leading cryptocurrency and liquidity issues. But despite the importance of the total, whale movements couldn’t be the only reason for BTC’s drop yesterday. According to CoinGlass, the cryptocurrency market has seen more than $350 million liquidated in the last 24 hours. The amount seems large and substantial.
However, the gradual selling of 15,000 BTC in the market cannot cause such a large increase in liquidations. Reportedly, the whales moved most of these old funds to the Kraken central exchange. They also likely went to sell their BTC before a price drop occurred. Meanwhile, most experts say the main reason behind the correction is due to the FED’s upcoming rate hike and the continued strengthening of monetary policy.
“I did not sell BTC”
Bitcoin, the two largest cryptocurrencies, has lost 5.35% in the last 24 hours. BTC dropped to $18,540 today, the lowest level since June 18. At the time of writing, it was trading at $18,773. After the recent sales, the value of the crypto market has slumped below the $1 billion mark.
Whale movements and interest rate hike expectations may be behind this. Still, a famous CEO felt the need to explain himself after the fall. In a recent tweet, former BitMEX CEO Arthur Hayes stated that despite the sharp correction, he did not sell.
What’s next for Bitcoin?
Bitcoin is consolidating at the July level and has yet to drop from that level. Fortunately, the current price level corresponds to a strong psychological and historical support level that is likely to keep the first cryptocurrency afloat. Most of the sensitivity indicators have returned to extreme fear.
BTC’s Relative Strength Index (RSI) reveals that the asset is already oversold. However, it also signals that it may decrease further if a new source of selling pressure emerges in the market. It seems that the price of the leading cryptocurrency will largely support inflation developments in the future.
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