Recent large sales of Bitcoin have led to significant price declines in the cryptocurrency market. Analysts are examining the causes of these events and their possible consequences.
Causes of Bitcoin Price Decline
The decline in Bitcoin's price has occurred amid large-scale transactions from long-term holders. Blockchain data suggests that Galaxy Digital moved approximately 30,000 BTC, valued at over $1.1 billion, to exchanges and OTC platforms. This aggressive liquidation has rattled the market, even though the firm still holds around 18,500 BTC.
Market and Analytical Projections
Analysts interpret this downturn as a market cooldown. BRN's Valentin Fournier described the drop as a 'healthy reset,' noting that the market momentum had overheated. He warned that Bitcoin might continue to slide toward $110,000 if the selling persists.
Impact on Altcoins and Overall Markets
The correction in the Bitcoin market has also affected altcoins, dragging down major tokens like Solana and XRP, while Ethereum managed a modest gain, rising to $3,722. Bitunix’s Dean Chen believes this phase is part of a broader shakeout targeting overleveraged positions, emphasizing that key support zones are still intact.
Despite current fluctuations, analysts believe the market is at a crossroads, and future developments will depend on the actions occurring among major players.
