Over the last 24 hours, the cryptocurrency market was shocked by $350 million in liquidations. Of this, 35% corresponds to bitcoin (BTC) for a total of USD 123,000, according to Coinglass records. This situation led to their prices being pressured downwards with a sales force greater than the demand.
This fall in cryptocurrencies occurred days following unusual movements were detected by some large market players. According to data on-chain from CryptoQuant, some whales (investors of bitcoin of a lot of capital) moved from their wallets 15,000 BTC that they had kept for more than 7 years.
Such a figure is equivalent to more than USD 283 million at this time. As the graph shows, it is unusual for whales from more than 7 years ago to suddenly move such bitcoin volumes. Precisely the market did not see a transaction of this type since last April; date on which the market was also preparing for a fall.
The movement was made divided into three transactions of 5,000 BTC each on different days during the week of August 27 to September 3. As CriptoNoticias reported, it has been verified that part of those bitcoins were sent to the Kraken exchangeprobably in order to sell them.
In the event that such a sale has taken place, it may have driven the decline in bitcoin and, consequently, that of other cryptocurrencies. Although it should be noted that it is not the only factor that might be affecting the market this week. Different experts maintain that the reason behind the fall is the uncertainty that exists in the markets in general.
Currently little appetite for risk is observed due to the macro context, which leads investors to move away from assets of this type such as bitcoin. In recent times this may have been increased by the fear of more inflation and interest rates in the United States as the dollar strengthens as a “savings currency.”
Digital asset investment products have more inflows outside of the United States
In relation to this, the CoinShares explorer reported what digital asset investment products posted record low trading volumes last week over several years for a total of USD 915 million. On inflows, he noted that there is “a divergent sentiment regionally despite low trade sizes.”
He indicated that Canada, Brazil, Switzerland and Germany recorded inflows of between USD 4.7 million and USD 1.6 million each. And he noted a pocket of negative sentiment in the United States, where inflows totaled $0.8 million. Precisely following the Jackson Hole eventwhere the Fed “expressed a much more aggressive view, unexpected by some investors.”
respect to investment products in Bitcoin in particular, mentioned that it registered outflows for a total of USD 11 million, which represents the fourth consecutive week of departures. Although he highlighted that short derivatives recorded a record inflows of USD 18 million.
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