Bitcoin Price Dips to Two-Week Low, Altcoins Follow Suit
Bitcoin has experienced a significant drop in value over the past 24 hours, falling nearly 3% to approximately $115,376. This marks its lowest point in two weeks after hitting a recent peak of around $119,291 on July 24. The decline has resulted in a loss of close to $4,000 in value during this period.
The sudden decrease in price is believed to be linked to large Bitcoin holders taking profits. According to data from CryptoSlate, asset management firm Galaxy Digital transferred nearly 30,000 BTC from its wallets in a single day. Most of these coins, valued at around $1.15 billion, were sent to centralized exchanges like Binance and over-the-counter trading platforms.
Despite the significant outflows, Galaxy Digital still holds 18,504 BTC, worth approximately $2.14 billion at current prices. Analysts estimate that the firm has sold around $8 billion worth of Bitcoin from its old wallets over the past week. The size and speed of these transfers have raised concerns about potential further selloffs in the near future.
Commenting on the price movement, Valentin Fournier, lead research analyst at BRN, stated that this recent dip is the second consecutive day of losses. He believes that the market is undergoing a cooling-off period after a period of overheating, with trading momentum weakening and new ETF inflows slowing down. Fournier anticipates further weakness that could potentially bring Bitcoin down to the $110,000 support zone in the coming sessions.
The downward pressure on Bitcoin has also affected altcoins, with major assets like XRP, Solana, and Dogecoin experiencing modest losses in line with Bitcoin’s slump. However, Ethereum has emerged as a rare gainer during this period, rising by around 2% to $3,722 at the time of writing.
Dean Chen, a crypto analyst at Bitunix, attributes the broader market pullback to profit-taking behavior following a prolonged rally. He suggests that the current move may be a liquidity sweep targeting overleveraged long positions. Chen believes that the market is still supported above key levels, indicating a consolidation phase rather than a full-fledged bear market. He anticipates renewed accumulation once the broader uncertainty clears.
In conclusion, the recent price movements in the cryptocurrency market, particularly in Bitcoin and altcoins, reflect a period of correction and profit-taking after a period of significant growth. While short-term volatility may persist, analysts remain cautiously optimistic about the long-term outlook for the market.