A Bitcoin entity offloaded $114 million worth of BTC to Binance. This transaction rattled the market, pushing Bitcoin’s price below $63,000. Fears of another sell-off mounted as a result.
According to Arkham Intelligence, at 1:40 UTC+8, a whale or institution transferred 1,800 BTC, valued at $114 million, to Binance. This transfer caused Bitcoin’s price to drop from $63,800 to $62,900. This entity has been active recently. Previously, it withdrew 6,725 BTC, equivalent to $437 million, from Binance and OKX. Over the past five days, it transferred 3,481 BTC worth $217 million back to Binance at an average price of $62,300. Currently, the whale or institution holds 7,867 BTC, worth approximately $494 million.
If BTC price rebounds again, the entity might capitalize on the recovered price. This could lead to heightened volatility in the market. Other market participants are also divesting their Bitcoin holdings, raising concerns of a further price drop.
In the last 72 hours, Bitcoin miners have sold over 2,300 BTC, valued at approximately $145 million. This increased selling pressure has contributed to the recent price decline. This sell-off is noted as a strategy to limit losses after the fourth Halving event that reduced block rewards from 6.25 BTC to 3.125 BTC.
Additionally, the German government has been liquidating its Bitcoin holdings. On Monday, July 1, it moved over 1,500 BTC. Out of this, 400 BTC worth over $25 million was sent to exchanges like Coinbase, Kraken, and Bitstamp. Since June, the total BTC sell-off by the German government has reached over 2,700 BTC.
These events have led to heightened market activity and volatility. The cumulative effect of whale movements, miner sell-offs, and government liquidations has intensified the downward pressure on Bitcoin’s price. Last month, the U.S. government also sold 4,000 BTC, with speculations of another sell-off impending.
CryptoQuant CEO Ki Young Ju commented on the current market situation. He termed the current Bitcoin trend as “boring” but also branded it as an “opportunity” to enter the market. In a post on X, he wrote, “Bitcoin market is boring with less volatility. Less interest from both buyers and sellers. Retail exit liquidity not ready. Ideal time for whales to accumulate $BTC. We’re still in a bull cycle. Boring is an opportunity.” His observations suggest that the market’s current lack of volatility could be a strategic accumulation period for whales. Despite the recent sell-offs, he believes the bull cycle is still intact.
Crypto analyst Ali Martinez provided additional insights. He noted, “Historically, when #Bitcoin has had a negative June, it tends to bounce back strongly in July. In fact, $BTC has shown an average return of 7.98% and a median return of 9.60% during this month.” Hence, Martinez’s historical analysis implies that despite June’s downturn, BTC could see significant gains in July.
The recent actions by large holders, miners, and governments have created a complex market environment. The whale’s transfer of 1,800 BTC to Binance, along with the significant miner and government sell-offs, has increased selling pressure and volatility.
At press time, Bitcoin’s price was down by 0.73% to $62,837.79 on Tuesday, July 2. The crypto market valuation stands at $1.23 trillion, with a 24-hour trade volume for Bitcoin clocking a whopping $21.75 billion, potentially due to the huge sell-offs.
