Bitcoin experienced a significant drop in price, going from $92,000 to $87,000 in a short period. Several factors contributed to this price decline. 1. Whales selling: Large amounts of Bitcoin were deposited to centralized exchanges by whales (large holders of Bitcoin) who likely wanted to cash in on their profits after the rally.
2. Miners selling: Miners have been selling their Bitcoin, with some even disposing of coins mined nearly 15 years ago, likely to take advantage of the recent price increase. 3. ETF outflows: After the announcement of Donald Trump’s win in the US presidential elections, investors poured substantial amounts into spot Bitcoin ETFs.
However, the high volumes suggested that BTC’s price might have reached its local top. Recently, there were substantial withdrawals from US-based ETFs, indicating a potential price correction. Despite a 17% increase on the week, Bitcoin remains away from its $100,000 target. The community hopes that this time, the price will continue to rise without experiencing a significant drop, unlike in 2021.
