Bitcoin Price Analysis: BTC Dips As Massive Transfer Impacts Prices
Bitcoin (BTC) dipped below $115,000 during the ongoing session, dropping to a low of $114,770 thanks to Galaxy Digital moving a whopping 17,123 BTC, worth nearly $2 billion, to multiple centralized exchanges.
Market sentiment also turned cautious ahead of the US Federal Reserve meeting and the release of a key crypto policy report. The flagship cryptocurrency is down nearly 2% during the ongoing session, trading around $116,548.
Galaxy Digital Moves Bitcoin (BTC) To Centralized Exchanges
Galaxy Digital has moved 17,123 BTC, worth nearly $2 billion, to multiple centralized exchanges in the past 12 hours. Blockchain intelligence platform Lookonchain noted that Galaxy Digital initially sent 10,000 BTC to exchanges in the past 8 hours. The transfer comes after the digital asset firm received 80,000 BTC from a Satoshi-era whale whose wallet was dormant for 14 years. Lookonchain stated on X,
“Note that it has deposited over 10,000 ($1.18B) to exchanges in the past 8 hours! The 10,000+ comes from the Bitcoin OG holding 80,009 ($9.68B).”
Galaxy Digital has withdrawn over 370 million USDT from centralized exchanges, including Bybit, OKX, and Binance.
The selloff has impacted Bitcoin prices, with the flagship cryptocurrency registering a sharp correction over the past 24 hours, as it fell below $115,000 to a low of $114,770. The decline has rattled investors, with many questioning if BTC can continue pushing higher in the face of such substantial selling pressure.
Strategy Launches New Preferred Stock To Build Bitcoin War Chest
Michael Saylor’s Strategy has launched a new type of preferred stock and upsized it from $500 million to $2.8 billion. The security, which Strategy is calling Stretch, promises a 9% annual payout, with no end date attached. The deal is part of Saylor’s efforts to transform his software company into a financial juggernaut with one goal: to raise funds to acquire as much Bitcoin as possible. Strategy’s Bitcoin holdings are worth over $70 billion at current prices. Campbell Harvey, a professor at Duke University, stated,
“This is not the first financial engineering initiative by Strategy. In any situation where your company is worth far more than its fundamental value, you raise money.”
Strategy has issued various types of debt and layered stacks of preferred stocks. The company has pioneered the “Bitcoin treasury” strategy, with several other public companies adopting the Strategy’s approach.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) plummeted below $115,000 on Friday, falling to a low of $114,770, resulting in the liquidation of over half a billion dollars in long positions. According to data from Coinglass, $585 million in long positions was liquidated, with Bitcoin accounting for $140 million of the total. Crypto trader Ash Crypto noted in a post on X,
“This dump is a pure leverage flush. Many people longed Alts after they saw ETH pumping hard, so market makers dumped and liquidated the late longs.”
Despite the significant pullback, overall crypto market sentiment remains bullish, with the Crypto Fear and Greed Index posting a “Greed” score of 70 on Friday. The pullback comes even as several crypto figures, including Galaxy Digital CEO Michael Novogratz, predicted higher prices for Bitcoin and other cryptocurrencies.
BTC’s dip below $115,000 earlier in the session was prompted by the distribution of thousands of BTC to crypto exchanges by Galaxy Digital. The drop triggered a wave of liquidations, becoming the latest chapter in the saga of the 80,000 BTC, which were last moved 14 years ago. Lookonchain noted,
“Bitcoin sell-off still underway! #GalaxyDigital deposited another 2,850 $BTC($330.44M) to exchanges 11 minutes ago.”
Despite the selloff, analysts stated that markets had not entered a state of panic.
“I see the current state of the market as cautionary more than panic. Panic often has volume & considerable volatility, which we don't have currently. Time to watch for sure though.”
BTC started the previous week on a bullish note, surging past $120,000 and reaching a new all-time high of $123,091. However, it lost momentum on Tuesday as traders locked in their profits. As a result, the price plunged to an intraday low of $115,701 before recovering to reclaim $117,000, settling at $117,682, ultimately registering a 1.70% decline. BTC rose on Wednesday, rising 0.82% to reclaim $118,000 and settle at $118,641. The price faced volatility on Thursday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as BTC rose 0.39% to cross $119,000 and settle at $119,101. Selling pressure returned on Friday as the price fell 1,03%, dropping to a low of $116,805 before settling at $117,877.
Source: TradingView
Price action remained bearish over the weekend as BTC registered a marginal decline on Saturday and fell 0.48% on Sunday to settle at $117,240. The price reached an intraday high of $119.603 on Monday. However, it could not stay at this level and settled at $117,397, ultimately registering a marginal increase. Bullish sentiment intensified on Tuesday as BTC rallied, rising over 2% to cross $119,000 and settle at $119,980. Selling pressure returned on Wednesday as the price fell 0.99% to an intraday low of $117,303 before settling at $118,794. BTC faced volatility on Thursday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as the price fell 0.35% to $118,381. The current session sees BTC down 1.20%, trading around $116,984, having recovered from an intraday low of $114,770.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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