The current market sell-off appears to be far from over, despite ranging for days with Bitcoin plummeting to $38,545 in the early hours of Monday morning, its lowest level in over a month.
Bitcoin and key altcoins have failed to go higher in recent hours, resulting in a large liquidation of long orders. Bitcoin (BTC) and Ethereum (ETH), the two most popular cryptocurrencies, have dropped roughly 4% and 5% in the last 24 hours, respectively.
The majority of the other major cryptocurrencies are also performing poorly. Solana (SOL), Polkadot (DOT), Terra (LUNA), and Avalanche (AVAX) have all dropped 6%, 7%, 4%, and 6% in the last 24 hours, respectively.
The sell-off triggered by Whales dumping their coins resulted in 79,269 traders selling across the cryptosphere in just 24 hours, bringing the total value liquidated to more than $235 million, according to Coinglass data.
The number of addresses on the Bitcoin network holding more than 10,000 BTC has declined by more than 4.60 percent in the last four days according to on-chain data. At least four huge whales have sold or reallocated their tokens in this short period of time.
The cryptocurrency market has been influenced by the Federal Reserve’s rapid tightening of monetary policy in order to combat inflation.
Recent statements by several members of the US Federal Reserve (Fed) about their plans to raise interest rates have alarmed investors even more.
Following the release of the March Consumer Price Index (CPI) report, which showed an increase of 8.5 percent, the largest since 1981, the market witnessed a relief bounce. The CPI in the United Kingdom also increased to 7%, a 30-year high.
All of the relief rally gains have now been reversed, with several Whales losing faith in the market’s short-term prospects and selling their tokens in large numbers during the last few days in what might be read as a sign of increased market volatility.
Bitcoin’s price trend is currently unknown, and there are no clear indicators as to what will happen in the coming months. One thing is certain: if Bitcoin’s global popularity continues, demand will soon surpass supply, causing the price to climb again.