Bitcoin has started the month of May with another downward move, so far touching the $56,480 level after an already red April.
The breakdown coincides with several whales – known and unknown – sending massive amounts of coins to crypto exchanges, presumably to sell on the open market.
Initially spotted by blockchain tracking firm Lookonchain, one whale was seen depositing 1,225 BTC worth $70.26 million to crypto exchange Kraken early on Wednesday. Several days before, the same whale was spotted depositing a separate 1,225 coins, also to Kraken.
According to Lookonchain, the whale had accumulated over 24,755 BTC worth about $1.68 billion between March 1 and April 15th – before de-risking and sending their coins back to Kraken as prices dropped.
Earlier this week, crypto “de-anonymizing” platform Arkham reported that digital assets manager Grayscale sent nearly a quarter of a billion dollars worth of Bitcoin (BTC) to Coinbase, potentially to sell on the open market.
Arkham’s data shows Grayscale sending BTC to Coinbase Prime or addresses associated with Coinbase mostly in batches of $42.84 million.
With Bitcoin’s price correction testing the conviction of bulls, some analysts like Benjamin Cowen have suggested that the asset class may be in for at least a multi-month bear market, similar to 2019.
Other analysts are more confident that the downward move is more of a short-term dip in a more urgent bull run.
Glassnode co-founders Jan Happel and Yann Allemann, who share the Negentropic handle on the social media platform X, say that with BTC’s latest correction, “the asymmetric bet is to the upside.”
According to the analysts, BTC could be ready to find a bottom just as Fed Chair Jerome Powell and the Federal Open Market Committee (FOMC) make their statement on interest rates.
“Volatility and Fear in Crypto – but is a Bottom close?
BTC and Altcoins saw a strong sell-off yesterday. And more this morning.
Fear has been spreading and calls for new lows are everywhere.
But – are we in fact close to the bottom? A large Pennant may still be the Correctional Structure. And FOMC is tonight…
Extension level is almost reached. Could 56.5K-ish be the turning point into FOMC?”
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Featured Image: Shutterstock/Tuso chakma/Natalia Siiatovskaia
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