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Bitcoin and Ethereum Whales Are Dumping Coins at a Loss, Will Support Levels Hold?
The crypto market’s squeeze continues to unfold, with assets registering double-digit exits. This development has been fueled by Bitcoin (BTC) and Ethereum’s (ETH) outflows, further exacerbating sell pressures in the second week. The total outflow has surpassed $2 billion as the market capitalization plunged to $3.19 trillion, a 3.8% decline thus far.
The recent data highlights significant BTC and ETH holders liquidating their assets to minimize losses as the market correction gains momentum. Bitcoin inflows to centralized exchanges have plummeted, followed by subsequent sales that have pushed its price below the $99,500 mark. This low price threatens the $90K support levels achieved at the start of the year.
The whale transactions recorded this week have been massive, with most institutional traders selling their coins at a loss to avoid stinging liquidations. On-chain data reveals that retail investors had previously sold their assets following a correction below $95,000, leaving institutional traders to buy the dip. This week’s sales from institutional holdings have highlighted the poor weekly performance of various products.
The BTC price has settled at $97,586, representing a 3% decline in the past seven days. The sharp drop in trader settlements and trading volumes has been reflected in the overall market sentiment.
ETH, on the other hand, has crashed to $2,620 as bulls struggle to hold the line. This marks a massive 14% decline since last week and a 3% plummet today. Ethereum’s downturn is compounded by the low sentiments prevailing across the crypto and decentralized (DeFi) market. With liquidations exceeding $500 million, ETH’s market capitalization has been reduced to $319 billion.
Furthermore, data from Lookonchain indicates that massive whale offloads have taken place with large transfers being made to Binance. A single trader lost a staggering $1 million through three transactions in an attempt to reposition themselves. The same whale had previously withdrawn 24,029 ETH ($81.3 million) from Binance via ten new wallets three weeks ago and currently holds 13,959 ETH ($45.48 million).
The downward trend affecting Bitcoin and Ethereum has taken its toll on altcoins and meme tokens, with the broader market experiencing severe exits, resulting in some assets posting double-digit outflows.
In conclusion, the recent price action in BTC and ETH suggests that their respective support levels are under immense pressure. The question remains: will these levels hold?
Source: zycrypto.com
