Bitcoin Plummets Below $57,000 Amidst Surge in Whale Activity

Bitcoin Plummets Below $57,000 Amidst Surge in Whale Activity

Bitcoin (BTC) has experienced a significant downturn over the past week, breaking below the key psychological barrier of $60,000 amidst heightened whale activity in the market.

In the last 24 hours alone, BTC has plummeted by 8%, now trading at approximately $56,990, a level unseen since late February. This decline has led to a drop in Bitcoin’s market capitalization, falling below the $1.13 trillion mark. Despite the downward trend, the asset’s daily trading volume has surged by 70%, surpassing the $45 billion mark.

Data from Santiment reveals a notable increase in whale transactions, defined as transactions involving at least $100,000 worth of BTC. Since April 28, the number of these transactions has surged by 60%, from 7,973 to 12,735 unique daily transactions.

Additionally, there has been a noteworthy uptick in the amount of Bitcoin supply held on exchanges, rising from 811,810 BTC to 821,740 BTC over the past 24 hours. This surge in exchange-held BTC suggests that some holders may be considering selling their assets amidst the prevailing fear, uncertainty, and doubt (FUD) in the crypto market.

Adding to the market apprehension, BitMEX’s recent report revealed that an unidentified entity controls a significant 47% of the global Bitcoin mining hashrate, posing potential centralization risks to the network.

Meanwhile, the BTC Relative Strength Index (RSI) has dropped from 52 to 40, indicating that Bitcoin may be undervalued at its current price level. However, the surge in whale activity could introduce higher price volatility to the asset in the near term.

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