Crypto markets experienced a significant drop after a long-dormant Bitcoin owner initiated a massive sell-off, creating panic among investors.
Massive Bitcoin Sale
According to Onchain data, the owner of a wallet associated with a large withdrawal from the HTX exchange in 2019 sold approximately 24,000 BTC, equivalent to nearly $2.7 billion, over just a few days.
Market Reaction to Fed Statements
Remarks from Fed Chairman Jerome Powell at the Jackson Hole meeting significantly lifted markets. Following his comments, Ethereum surged over 10% and XRP over 5%. However, as the week drew to a close, investors became skeptical about the likelihood of a September rate cut.
Consequences for the Crypto Market
By Monday morning, the total crypto market capitalization had shed $80 billion, falling below $4 trillion. More than $715 million in leveraged positions were liquidated, further deepening the market's decline.
Recent events in the crypto markets highlight the instability and uncertainty affecting investors and market participants.
