Bitcoin Price Drop Below $88,000 Triggers Whales to Accumulate 26,430 BTC
Bitcoin experienced a significant price drop, reaching $87,081, while total market capitalization fell to $3.01 trillion. Whales capitalized on this decline, acquiring 26,430 BTC worth approximately $2.35 billion. Analysts cite ETF outflows and macroeconomic issues as factors contributing to the downturn, while some express cautious optimism regarding a potential recovery.
Bitcoin (BTC) began the week negatively, continuing a significant decline observed on Monday. After a fleeting moment of stabilization above $91,000, the cryptocurrency faced renewed selling pressure, leading to a decrease in value to $87,081 by mid-Tuesday. Daily liquidations in the market exceeded $870 million, as reported by Coinglass.
The overall cryptocurrency market suffered as well, experiencing an 8.9% reduction in total market capitalization, now at $3.01 trillion. Despite the downward trend, significant purchases were made by Bitcoin whales, who seized the opportunity to collect approximately $2.35 billion worth of BTC shortly after the price drop. Analysts from IntoTheBlock reported, “Whales are buying. 26,430 BTC just flowed into whale accumulation addresses, often linked to OTC deals and long-term custody.”
The recent dip in Bitcoin’s price is attributed to multiple factors. According to crypto analyst Nic, there have been notable ETF outflows amounting to $649 million this week alone. He suggested that a decline in institutional “cash and carry” trades may also be contributing to the downward pressure. Macroeconomic uncertainties, including delayed tariffs against Mexico and Canada, further impact market sentiments.
Moreover, Bitcoin’s drop beneath its 100-day moving average has raised concerns among analysts. On-chain data indicates potential support for BTC around $71,600, aligning with lower standard deviations of short-term holder costs. Former BitMEX CEO Arthur Hayes expressed a negative perspective on the situation, indicating a further decline could unfold as ETF sales continue, stating, “If that basis drops as $BTC falls, these funds will sell $IBIT and buy back CME futures.”
Conversely, some analysts express cautious optimism. Darkfost from CryptoQuant observed a shift in the retail demand indicator to 0%, a level that has historically preceded price rebounds. Additionally, analyst Rekt Capital emphasized the significance of Bitcoin reclaiming the $96,700 level by the end of February, as a close above this threshold would substantiate a bullish breakout.
As of press time, Bitcoin is valued at $87,098, reflecting a 7.60% decline in the past 24 hours, signaling the ongoing volatility within the cryptocurrency market.
In summary, Bitcoin’s price decline reflects a confluence of market pressures, leading to significant sell-offs and liquidity challenges. Whales have responded by accumulating substantial amounts of BTC, indicating confidence amidst uncertainty. While analysts project potential support levels, others highlight critical price points necessary for bullish momentum. The market remains highly fluid as external economic factors continue to influence Bitcoin’s performance.
Original Source: zycrypto.com
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