An anonymous Bitcoin whale may have triggered a massive sell-off panic in the crypto market recently. According to an X (formerly Twitter) post by Ali Martinez, the whale sold off a whopping 59,000 BTC totaling over $2.45 billion. 

Bitcoin Whale Dumps 59,000 BTC

In his X post, Martinez announced that a Bitcoin whale has initiated a large-scale dump, selling off approximately 59,000 BTC. He shared a chart displaying the Bitcoin Spend Output Age Bands which revealed that the Bitcoin whale had initially acquired 59,346.950 BTC during the last six months of 2023. 

As per the crypto analyst’s estimate, the whale had bought this staggering amount of BTC at an average price value of $26,000. With BTC’s current value nearly doubling since the initial purchase, the whale’s 59,000 Bitcoin investment has yielded an outstanding 57.69% profit. This percentage puts the total gain at approximately $885 million. 

This recent Bitcoin sell-off adds to a series of similar whale activities observed in the crypto space lately. Shortly after the launch of Spot Bitcoin ETFs, a Bitcoin whale sold 2,742 BTC worth $127.7 million at the time. This strategic move resulted in a substantial profit of over $74 million. Additionally, reports from Whale Alert have seen 6,621 BTC worth over $276 million being transferred from an unknown whale wallet to Coinbase, an American crypto exchange. 

Usually, in the crypto space, small amounts of Bitcoin transactions have no effect on the market, but a transaction involving hundreds of millions, or billions of dollars worth of Bitcoin can potentially create massive selling pressure and adversely influence the price of the cryptocurrency.

BTCUSD trading at $41,544 on the daily chart:

In respect to this, popular market intelligence platform, Santiment disclosed on X that the crypto market has been consistently experiencing declines that could induce panic among traders. 

The crypto data intelligence platform shared a chart illustrating the dip possibilities that could be triggered by Fear, Uncertainty, and Doubt (FUD) among crypto traders and investors. Santiment predicts that if bearish sentiments cause traders to panic, it may prompt major sell-offs and potentially instigate a significant bounce in the market. 

BTC Drops Below $42,000

Although 2024 has been heralded as the year of the crypto bull run, the price of Bitcoin has been experiencing unexpected declines recently. 

Initially, BTC surged above $49,000, its highest level in 2023. However, currently the price of the cryptocurrency is trading below the $42,000 price mark. At the time of writing, Bitcoin’s price stands at $41,487, reflecting a 3.29% plunge over the past seven days, according to CoinMarketCap.

Despite the bullish sentiments brought by the approval and launch of Spot ETFs, Bitcoin has failed to rally above the $50,000 price mark predicted by expert crypto analysts. Santiment has suggested that the approval of Spot Bitcoin ETFs appears to be a classic case of a “buy the rumor, sell the news event.”

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