Bitcoin Suffers Additional 5% Slump Today as Whales Dump Holdings

Bitcoin (BTC) is currently witnessing one of its most bearish periods this year, having collapsed nearly 21% from the June 7 peak of $72,144.

Bitcoin (BTC) price dropped by an additional 5% on Monday, continuing a four-week downtrend from June 7 highs of $72,144. BTC price briefly recovered from this downturn on June 25 after retesting $58,000, leading to a six-day consolidation period. This consolidation ended with an uptick from June 29 to July 1, with July expected to restore bullish momentum.

However, some market watchers warned of a resumption of hostilities. Dr. Martin Hiesboeck, Head of Research at Uphold, warned of a Bitcoin double top on the weekly chart, indicating sustained dips.

This projected downtrend has now materialized, with Bitcoin price dropping by an additional 5% on Monday. The crypto token relinquished the $59,000 and $58,000 price thresholds to bearish action, currently trading for $57,426. This renewed slump is a product of multiple selloffs by several whales.

On-chain analytics platform Spot On Chain (SOC) called attention to four of these large selloff events. In their report, they identified the movement of 3,500 BTC ($206 million) to Binance. The whale involved, though unknown, is likely depositing them in an attempt to dump. The address still holds 4,368 BTC at a loss.

Besides this whale, another unidentified address sent 1,023 Bitcoin valued at $62.2 million to Binance on Monday. This has compounded selling pressure, leading to investor angst and bolstering the ongoing downtrend.

The German government also took center stage on Monday, with criminal police office BKA transferring out 3,000 BTC, sending 1,300 of these tokens to exchanges for selloffs. These tokens are part of the 50,000 BTC seized by the government in 2013 from defunct piracy platform Movie2k. BKA still holds 40,359 BTC.

Also, the American government transferred 237 Bitcoin worth $13.67 million to a new wallet on Monday. Some entities, such as exchanges or institutions, create fresh wallets with intentions of dumping their holdings. SOC confirmed that the U.S. government still has a balance of 213K BTC confiscated in multiple enforcement actions.

In addition to the selloff campaign spotlighted by SOC, blockchain reporter Colin Wu highlighted movements by bankrupt exchange Mt Gox on Monday.

Mt. Gox conducted several small transfer tests at 12:21 UTC+8 today, including 0.0001 BTC transferred to Bitbank hot wallet; 0.0001862 BTC transferred to unmarked address: 1JdFfR…qg849e; 0.0001 BTC transferred to unmarked address: bc1qkj…2ug68h. https://t.co/SxMSSYkMRU

— Wu Blockchain (@WuBlockchain) July 4, 2024

The exchange carried out several BTC test transactions in the build up to their compensation plan. Recall that Mt. Gox confirmed plans to begin repayment to creditors in early July, with 141.687K BTC ($8.1 billion) as balance. The development comes after the exchange moved 140K BTC to the current wallet in May in preparation for the repayment.

Meanwhile, The Crypto Basic reported on Monday that a dormant Bitcoin whale awoke after 12 years to move out 119 BTC. These movements have contributed to investor angst, leading to further selloffs and ultimately causing the declines on Monday. CryptoQuant confirmed that new investors have been selling off their holdings, having recently dumped $2.4 billion.

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