- Bitcoin Leads Cryptocurrency Sell Off
The most dominant cryptocurrency, Bitcoin, dropped more than 6.2 percent of its value on Friday to trade at $5,244 a coin. The largest one day drop in eight months.
Prior to the sudden drop, $6,000 and $5,000 support levels are widely regarded as bottoms for the virtual currency. However, Bitcoin has now broken both levels to trade at a $5,244 before rebounding to $5,564.“The movement we saw today seemed to be the run-of-the-mill volatility surrounding Bitcoin and a breakout that’s been weeks coming,” said Mati Greenspan, senior market analyst in London at eToro. “It’s difficult to say where it ends. No one can really predict.”
The sudden drop in value after months of what seems like a stable market has now created panic sell-off among traders.
According to Abraham Merkin, a cryptocurrency trader, the spike in trading volume is a concern, especially “after months of low volume and low market interest this has all the markings of a triggered panic sell. Volume is up as high as 85% on some exchanges and 20-25% is common even among mainstream exchanges.”
Bitcoin is now down 12.10 percent in the last seven days, while Ripple has dropped 15.94 percent and Litecoin is down by 18.32 percent during the same period.
The uncertainty and volatility surrounding the cryptocurrency market continued to hurt its attractiveness as more people keep looking the other way.
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Dormant Ether Holder Awakens, Transfers Nearly $90 Million to Kraken Exchange
A significant Ethereum (ETH) holder, dormant for five years, recently transferred almost $90 million worth of the token to the crypto exchange Kraken.
The on-chain analytics tool Lookonchain reported this development in the early hours of Tuesday, shedding light on the activities of this long-inactive “whale.”
A whale refers to an entity holding a substantial amount of any cryptocurrency.
Blockchain data reveals that during the Asian morning hours, the whale deposited 39,260 ether into Kraken. In 2017, this same address received 47,260 ether estimated at over $11 million at the time.
An early $ETH whale appears to be selling ETH again after being dormant for 5 years.
The whale received 47,260 $ETH($11.34M) at ~$240 from June to August 2017.
If sold the whale would make a profit of ~$78M. pic.twitter.com/v0PI4LNTKO
— Lookonchain (@lookonchain) December 5, 2023
Upon analyzing the address, it was discovered that previous transactions were not linked to the cold storage of any exchange.
However, there is a possibility of a connection to trading firm Cumberland as indicated by labeling on the data tool Arkham.
The significance of such a large holder moving assets to an exchange lies in the potential repercussions for the market.
When whales transfer funds to exchanges, it often raises speculation about selling pressure as the holder might either sell the tokens for stablecoins or convert them into other cryptocurrencies.
This event adds an element of intrigue to the cryptocurrency market as observers keenly watch for any subsequent market movements.
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