Bitcoin hit a short distance below $108,000 on August 30th, hitting its weakest level since early July. The move came when market watchers tracked massive sales pressures from whale wallets that had been dormant for years.
Analysts from several chains noted that whales’ addresses suddenly began to shift massive amounts of BTC, causing concern among traders.
Bitcoin slips when dormant whales transfer billions to Ethereum
On August 29, Blockchain Analytics company Arkham Intelligence reported that an entity controlling Bitcoin is transferring to Ethereum.
The whales moved about $1.1 billion worth of assets to their new address before they began a wave of Ethereum purchases.
In particular, Arkham said the whales had already accumulated around $2.5 billion in ETH last week.
Another blockchain analytics company, Lookonchain, reported that the whales had shifted 4,000 BTC (over $430 million) to high lipids early on Saturday. The move added weight to speculation that the whales were actively spinning into the ETH.
Meanwhile, the aggressive relocation of whales quickly spilled over the wider market.
Bitcoin flowed about 2% in 24 hours, falling below $108,000, while Ethereum won roughly the same percentage in the same window.
Crypto traders speculating about these asset prices also absorbed a huge loss.
Coinglass data shows the total liquidation of over $400 million in one day. Ethereum’s long position was hit hardest, wiping out $133 million and losing $109 million to Bitcoin counterparts.
With this in mind, Julio Moreno, director of research at Cryptoquant, warned that Bitcoin should recover the $112,000 mark to quickly avoid deeper losses. He predicted that if Momentum didn’t return, BTC could test support in close to $100,000.
Moreno also pointed out a sentiment gauge that remains firmly negative. The company’s Bullscore index fell to 20 earlier this week and has remained there ever since. It shows an “extreme bearish” environment.
Therefore, until these metrics improve, analysts expect volatility to continue to rise.
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