Connect with us
Active Currencies 16167
Market Cap $3,870,290,675,749.50
Bitcoin Share 53.94%
24h Market Cap Change $-2.82
Bitcoin

Decoding what’s behind Bitcoin’s [BTC] volatility as price touches $25k

2min Read
Posted:
Avatar
editors
Bitcoin: Decoding the reasons behind BTC’s recent volatile price movements 
Avatar
editors
Posted:

Share this article

  • Several funds/institutions poured nearly $1.6 billion into the crypto market since 10 February.
  • The bears have taken over the market as BTC’s price plummeted.

Bitcoin [BTC] surprised the entire crypto market by registering gains as its price exceeded $25,000 on 16 February. This was good news, as BTC reached that mark after a long struggle of eight months. Moreover, as per Santiment, one reason behind the pump was that whales had accumulated $2.7 billion Tether [USDT] since December 2022. 

Read Bitcoin’s [BTC] Price Prediction 2023-24

Several factors were at play for Bitcoin

Apart from that, Lookonchain also pointed out another factor that could be attributed to BTC’s surge. As per the analysis, multiple funds and institutions have poured nearly $1.6 billion into the crypto market since 10 February 2023, despite the then-bearish market.

For instance, nearly 1.6 billion USDC was withdrawn from Circle during that period. Moreover, another address, “0x308F,” withdrew 155 million USDC from Circle and transferred it to exchanges. 

The aforementioned developments had a positive impact on the market, resulting in a bullish rally. However, the northbound breakout was short-lived, as the market witnessed a trend reversal soon.

According to CoinMarketCap, BTC’s price declined by over 3.8% in the last 24 hours, and at the time of writing, it was trading at $23,713.42 with a market capitalization of over $457.4 billion. 

Which metrics are to blame? 

A look at BTC’s on-chain metrics revealed quite a few reasons that supported the bears and caused the most recent price decline. For example, as per CryptoQuant, BTC’s exchange reserve was increasing, which indicated higher selling pressure. BTC’s aSORP was red, suggesting that more investors sold their holdings for profit amidst the bull rally.

Another bearish signal was a decline in BTC’s open interest in the last 24 hours as it plummeted by over 9%.

Is your portfolio green? Check the Bitcoin Profit Calculator 

Santiment’s chart also pointed out a few interesting metrics. BTC’s recent price decline was accompanied by high volume, further legitimizing the downtrend. Negative sentiments around BTC spiked in the last few days, indicating less trust among investors in the coin. Moreover, BTC’s exchange inflow increased considerably.

Interestingly, Glassnode’s chart revealed that BTC’s mean transaction volume just reached a one-month high of 1.869 BTC. After registering a considerable spike, BTC’s MVRV Ratio went down, further increasing the chances of a continued downtrend in the coming days.

Source: Santiment

 

Previous:
Next:

Share

Avatar
Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.