Bitcoin’s price movement has been the town’s talk for the past few weeks, especially after its value had dropped by more than 35%. While most of the industry was trying to stay afloat during the Coronavirus pandemic, some new information has come to light about the recent Bitcoin price crash.
According to a report published by Chainalysis, institutional and professional investors were the main reasons for the Bitcoin price crash. This was different from the belief that retail investors were to blame for the market dip.
Bitcoin price crash by almost 40 percent over the past two weeks and the dip had resulted in an investor rout. For an industry that has been anticipating the arrival of institutional money, the overturn in the capital was an unexpected twist.
Chainalysis found out that the bitcoin transfers between 10 BTC and 1,000 BTC constituted almost 70 percent of all transactions to crypto exchanges.
During the trading time between March 12 and March 13, cryptocurrency exchanges saw an unprecedented rise in trading volume. During a typical trading day in March, exchanges witnessed trades of around 319,000 BTC but that multiplied by 9x on March 13.
Experts claimed that the sell-off was because of the worldwide Coronavirus scare. According to the report:
“These trends suggest that the deeper pocketed professional traders and investors were driving the market, but they were joined, both on the selling and the buying, by a large number of retail holders.”
During the aforementioned date, almost 10 percent of all Bitcoin transfers were over 10,000 BTC. Bitcoin crashed along with its counterparts such as the Nasdaq and the S&P 500. The mainstream stocks and crude oil had sunk to 25 year lows and investors were in deep despair.
Bitcoin price crash came as a surprise to many because it went against the concept of a ‘safe haven’ asset.
At the time of writing, Bitcoin was trading for $5,980.82 with a total market cap of $109.31billion. A surprising 13.11 percent increase in its price had also lifted the 24-hour market volume to $50.47 billion.
