After enjoying a period of stability, Bitcoin has plunged below the critical $57,000 threshold for the first time in two months, signalling a significant downturn in its trajectory.
The cryptocurrency, which had been hovering comfortably above the $60,000 mark, succumbed to a downward spiral, shedding 8% of its value in the past 24 hours alone.
Presently, Bitcoin is valued at approximately $56,990, mirroring its late February figures.
This decline has also impacted Bitcoin’s market capitalization, which now sits below $1.13 trillion, indicative of a substantial shift in investor sentiment.
However, amidst this downturn, Bitcoin’s daily trading volume has surged by an impressive 70%, exceeding $45 billion. This indicates heightened activity within the market.
Data provided by Santiment reveals a notable surge in whale transactions—transactions involving at least $100,000 worth of BTC—rising by 60% since April 28.
This surge, from 7,973 to 12,735 unique daily transactions, suggests significant movement by large investors.
Additionally, there has been a noteworthy increase in the amount of Bitcoin held in exchanges, climbing from 811,810 BTC to 821,740 BTC over the past 24 hours, per Santiment’s data.
These trends may indicate a growing inclination among Bitcoin holders to offload their assets, likely fueled by prevailing fear, uncertainty, and doubt (FUD) permeating the crypto market.
Compounding these concerns is a recent report from BitMEX, highlighting that an unidentified entity commands a staggering 47% of the global Bitcoin mining hash rate, raising alarming centralization concerns within the network.
Conversely, Bitcoin’s Relative Strength Index (RSI) has plummeted from 52 to 40, suggesting the cryptocurrency is undervalued.
However, coupled with the increased whale activity, this may herald heightened price volatility in the near term, further accentuating the uncertainties surrounding Bitcoin’s trajectory.
