Cryptocurrency markets continued their decline on Tuesday as Bitcoin (BTC) fell to nearly $66,000.
Specifically, Bitcoin (BTC) started trading day June 11 at nearly $70,000 before falling to a three-week low at $66,170. After that, BTC recovered slightly to nearly $67,700 but is still down nearly 5% over the past 24 hours.
Altcoins also suffered a sell-off in the past day. The CoinDesk 20 global cryptocurrency market index is down more than 6%, with all twenty coins in it falling in price. Specifically, Ethereum (ETH) dropped to nearly $3,500, losing 6.5%, while Solana (SOL), Dogecoin (Doge), Cardano (ADA), and Chainlink (LINK) suffered losses ranging from 6% to 9%.
This sudden drop in price has resulted in over $250 million in liquidation in leveraged trading positions across all Cryptoasset in the past 24 hours, according to data from CoinGlass.
Reasons why Bitcoin and Crypto market prices "plunged"
The market is cautious about the news of CPI and FED's interest rate decision
One reason for the market's decline is that investors are looking ahead to the May CPI and tomorrow's Federal Reserve meeting.
Although all predictions are that the FED will reduce interest rates at this meeting, the market is cautiously waiting for the FED's upcoming interest rate outlook. During the meeting, the FED will publish a "dot chart" to Chia perspectives and predict the number of interest rate cuts this year based on inflation data and economic data.
“Everything is set for a chaotic economic Wednesday, with May CPI data and the Fed's interest rate decision set to have a major impact on the market,” K33 analysts said.
“FOMC dot plot during Jerome Powell's press conference, may be the most important factor, as BTC has continued to pay attention to market interest rate expectations.”
Besides, the unpredictability of the upcoming CPI index is also a factor that makes the FED cautious, because this is an important index reflecting the inflation situation - a factor affecting the FED's interest rate decision. .
Whales and Miners continue to sell Bitcoin
The second reason for the recent drop in Bitoin price is the selling action of Miners and “hibernating” Bitcoin whale wallets.
According to Ki Young Ju, CEO of CryptoQuant, Marathon Digital – one of the largest Bitcoin mining companies currently – just sold 1000 BTC yesterday. This is the largest single-day volume OTC Bitcoin sale the company has made since late March.
Also Read: Marathon Digital just sold 1000 Bitcoin on June 11 (allinstation.com)
In addition, recently a Bitcoin "whale" wallet that had been dormant for 5.5 years suddenly woke up and transferred Bitcoin to many different addresses, including Binance and Wintermute wallets.
At 20:37 on June 11 (Vietnam time), a “whale” wallet that had been inactive for 5.5 years transferred 8,000 BTC (about 535.64 million USD) to multiple addresses, including the Binance Deposit address. The total amount of BTC transferred to 4 Binance Deposit addresses is 1,416.1 BTC.
In addition, whales also perform many other notable money transfer transactions such as:
- 150 BTC were transferred to an address marked as belonging to Wintermute.
- The remaining BTC was transferred to multiple unmarked addresses, including:
- 882 BTC moved to 17M9xc…aoJ9UV
- 882 BTC goes to 1MECjB…9cdCyk
- 882 BTC moved to 18b2nb…Ghq3cW
This move may warn that the whale wallet mentioned above wants to gradually "take profits" from its Bitcoin.
Julio Moreno, head of research at CryptoQuant, commented that the current market cycle has put more Bitcoin OGs (early Bitcoin investors) back into action than ever before.
These entities Capital not moved their Bitcoin holdings in over a decade, but are now starting to operate again. This trend shows that the movement of old Bitcoin is increasing, thereby creating a notable signal in the current market cycle.
Also Read: Ancient Bitcoin whale wallets are gradually "awakening" (allinstation.com)
