Mt. Gox, Tether, and Abraxas Join Chain Sell-off... $228 Billion in Market Cap Evaporates
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According to on-chain data on the 4th, Strategy sold 32 Bitcoins ($2.47 million, approximately 3.8145 billion KRW), and over the following three days, the price of Bitcoin fell by $11,400, plunging 15.6%. During this process, Bitcoin's market capitalization evaporated by $228 billion (approximately 352.101 trillion KRW).
Following Strategy's sell announcement, $1.45 billion (approximately 2.24 trillion KRW) flowed out of the Bitcoin spot ETF over three trading days. The outflow of funds from the ETF continued for 13 consecutive trading days, bringing the cumulative outflow to $4.37 billion (approximately 6.754 trillion KRW).
Strategy's sell-off triggered a chain reaction among major holders. The bankrupt cryptocurrency exchange Mt. Gox moved its Bitcoin holdings to the Bitstamp exchange.
Stablecoin issuer Tether has also transferred the Bitcoin it holds as reserves to the Bitfinex exchange for the first time. Tether's move to a Bitcoin exchange is an unusual step, and the market is focusing on the possibility of a sell-off.
Virtual asset management firm Abraxas Capital has also joined in reducing its Bitcoin holdings.
Strategy is a representative listed company that, along with MicroStrategy, has been making large-scale purchases of Bitcoin at the corporate level. Their continuous buying strategy has acted as a strong supply and demand support factor in the market.
The industry analyzes that this incident, in which a small amount of sell announcements severely dampened market sentiment and triggered a chain of sell-offs by large holders, has revealed the vulnerable supply and demand structure of the current Bitcoin market.
Choi Joo-hoon joohoon@blockstreet.co.kr
