Sudden Decline in Bitcoin Price – Here’s the Reason for the Drop

In a recent development, FomoChain, a cryptocurrency analysis company, reported a significant event that caused volatility in the Bitcoin market.

According to the analysis company’s statement, a mysterious whale sent 11,739 BTC worth $490.45 million to the cryptocurrency exchange Coinbase. Following the transfer, the BTC price immediately dropped by 1.22%. Although transfers to cryptocurrency exchanges often mean sales, it is not known what transactions this whale made.

BTC, which was around $42,200 before the decline, dropped to $41,375 with the decline.

The whale wallet in question was a fresh account created recently. Before the transfer, he had been buying BTC continuously for the last two days.

Recently, BTC price has been in a downward trend despite the spot ETF approvals last week. The main reason for this decline is thought to be Grayscale’s GBTC product, which again turned into a spot ETF. Investors who previously purchased this product, which operated as a trust, sell their shares after the approval of the spot ETF.

*This is not investment advice.