Bitcoin, the world’s largest cryptocurrency, experienced a sharp decline on Sunday evening, falling below the $65,000 mark. Over the past 24 hours, the price dropped by approximately 5%, primarily due to large holders transferring their coins to exchanges and recent buyers selling at a loss. The market was already in a fragile state. The most significant drop occurred within two hours on Sunday evening. Bitcoin recorded its first instance of six consecutive weeks of negative weekly closes, closed below its 100-week moving average for six straight weeks, and fell for three consecutive weeks from its 2021 peak. At the time of reporting, Bitcoin was trading near $64,500, about $3,500 lower than the start of the day.
In recent weeks, Bitcoin’s price slipped below the $67,000 level, breaking a stable but narrow trading range and declining further amid low liquidity. Trading activity increased, indicating active selling rather than quiet price erosion. Data from cryptocurrency analytics firms reveal that major investors, known as “whales,” are increasingly moving coins to exchanges. The exchange whale ratio reached 0.64, the highest since 2015, while the average Bitcoin deposit size hit its highest level since June 2022. This suggests that large investors are leading the selling pressure in the market.
Although the total inflow of coins to exchanges has decreased compared to early February, market volatility remains likely. The recent price decline reflects bearish dominance, with no strong response from buyers. However, some institutional investors continue to increase their Bitcoin holdings. For example, Abu Dhabi’s Mubadala Investment Company has significantly boosted its stake in BlackRock’s iShares Bitcoin Trust, investing billions of dollars. Other investors are also increasing their positions in Bitcoin ETFs, and a large firm recently purchased thousands of Bitcoins, continuing to expand its overall investment despite facing unrealized losses in the billions. These developments indicate that Bitcoin’s market may experience further volatility, urging investors to exercise caution.
Source: bitcoinmagazine
