spot_imgspot_imgspot_img

Why Bitcoin Price Dropped: SpaceX, Evergrande, and Whale Movements!

  • Bitcoin experienced a significant drop in value, losing about 9% in a single day.
  • Over $1 billion worth of positions were liquidated during the sell-off.
  • The sell-off was influenced by reports of SpaceX selling its $373 million Bitcoin holdings and the bankruptcy filing of Chinese real estate giant Evergrande.

Bitcoin, the largest cryptocurrency by market value, saw a major decline on Friday. In the past 24 hours, BTC dropped from around $29,000 to $25,166. According to Coinglass data, over $1 billion worth of positions were liquidated during the sell-off. The amount of Bitcoin liquidated was the highest seen in a single day since the market turmoil in June 2022. Within the past 24 hours, $500 million worth of BTC positions were liquidated, with $375 million of that coming from Long positions.

Bitcoin-Total-Liquidations-Chart

Bitcoin’s Decline: The Key Reason

The Wall Street Journal’s report on SpaceX selling its $373 million Bitcoin holdings caused concern in the market. The daily report does not specify when SpaceX sold its Bitcoin, so the news remains speculative.

Additionally, the bankruptcy filing of Chinese real estate giant Evergrande also affected the crypto market. In addition to these factors, Judge Torres accepted the SEC’s request for an interim appeal in the Ripple case last night. All of these events instilled fear in the market. Santiment, an on-chain analytics firm, shared possible reasons for Bitcoin’s decline.

Bitcoin Whale Transactions and Market Sentiment

Bitcoin Whale Transactions

“Bitcoin whale transactions reached the highest level in a month today, and they started before the major drop. The amount of $1 million transactions for BTC started to drop below $26,600 before the decline. The crypto markets experienced one of the sharpest price drops in 2023. We are seeing a significant number of BTC transactions larger than $1 million, indicating that whales are very active. However, the number of large wallets is not decreasing.”

Santiment revealed that Bitcoin whale transactions reached the highest level in a month. According to Santiment, this trend usually starts well before a major drop. In other words, it suggests that whales are very active during a decline. Santiment also noted that the number of addresses holding more than 10 BTC remained high despite the market downturn. The news of SpaceX selling Bitcoin and the bankruptcy filing of Evergrande increased fear in the markets. Lastly, it is worth mentioning that Bitcoin is currently trading at $26,000, experiencing an 8% drop.

Conclusion

Bitcoin’s recent decline can be attributed to various factors, including the news of SpaceX selling its Bitcoin holdings and the bankruptcy filing of Evergrande. The liquidation of over $1 billion worth of positions during the sell-off also contributed to the drop in Bitcoin’s value. Despite the decline, the number of large Bitcoin wallets remains high, indicating continued interest and activity in the cryptocurrency market.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news

spot_imgspot_imgspot_imgspot_img

Latest News

Merlin Chain’s Mainnet Success: Over $1.97 Billion TVL and Strong Bitcoin Ordinals Ecosystem Involvement

Merlin Chain emerges as a formidable player in the Bitcoin second-layer ecosystem, boasting over $1.97 billion in TVL shortly after its mainnet launch, signaling strong market confidence and adoption.

Block’s Bitcoin Strategy Yields $207M in Gains, Spurs 90% Profit Surge

Block, Inc. reports a spectacular $207 million gain from its Bitcoin investments last quarter, reflecting a 90% increase in Bitcoin gross profit and propelling its stock to soar in after-hours trading.

Kraken Challenges SEC: A Standoff Over Crypto Regulation and Political Free Speech

Kraken's legal battle with the SEC highlights the ongoing tension between crypto exchanges and regulatory authorities, underscoring critical questions about the future of digital assets in the United States.

Starknet STRK Token Price Soars as StarkWare Adjusts Unlock Schedule Amid Community Feedback

Following StarkWare's response to community backlash by revising the STRK token unlock schedule, Starknet sees a price surge, highlighting the impact of tokenomics on crypto valuations.

Reddit Announces IPO with a Crypto Twist: Bitcoin, Ethereum, and MATIC Holdings Revealed

In a significant move towards becoming a publicly traded company, Reddit reveals its cryptocurrency holdings, including Bitcoin and Ethereum, in its latest SEC filing, marking a notable fusion of social media and blockchain technology.
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Ethereum Breaks $3K as Rally Continues: What’s Next for ETH?

This article dives into Ethereum's recent surge past $3,000, analyzing the technical indicators and market dynamics driving its ascent and future prospects.

Will Bitcoin Rise To $50,000? Current BTC Analysis

Bitcoin is trading at $48,400 and may rise to $50,777 if it closes above $48,200. However, caution is advised in the range of $50,777 - $52,000. Corrections are common in the crypto market, so careful consideration is necessary before spot investments.

Where is the Solana Rise Target? Current SOL Analysis!

Solana is trading near the $108 resistance on the 8-hour chart, with a potential target of $111.84 if it surpasses this level. However, caution is advised in the $111.84 - $117.20 resistance range on the 6-hour timeframe.

Medium Term Ethereum Technical Analysis! What Awaits Its Investors?

When examining the medium-term technical chart of Ethereum, strong buying pressure is observed, pushing the price up from the $2139 support to the $2350 region. However, for the price to sustain its upward movement, it needs to surpass the $2407 resistance.

Can Bitcoin Fall To $35,000 Levels? Current BTC Analysis

When examining Bitcoin's 5-day technical chart, the analysis from January 18 is ongoing, indicating a continued downward movement from the $48,189 level. Bitcoin needs to close 5-day candles above the $44,200 resistance to gain momentum for an upward trend. 
Lucien Renard
Lucien Renardhttps://en.coinotag.com/
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.
spot_imgspot_imgspot_imgspot_img

Merlin Chain’s Mainnet Success: Over $1.97 Billion TVL and Strong Bitcoin Ordinals Ecosystem Involvement

Merlin Chain emerges as a formidable player in the Bitcoin second-layer ecosystem, boasting over $1.97 billion in TVL shortly after its mainnet launch, signaling strong market confidence and adoption.

Block’s Bitcoin Strategy Yields $207M in Gains, Spurs 90% Profit Surge

Block, Inc. reports a spectacular $207 million gain from its Bitcoin investments last quarter, reflecting a 90% increase in Bitcoin gross profit and propelling its stock to soar in after-hours trading.

Kraken Challenges SEC: A Standoff Over Crypto Regulation and Political Free Speech

Kraken's legal battle with the SEC highlights the ongoing tension between crypto exchanges and regulatory authorities, underscoring critical questions about the future of digital assets in the United States.