Bitcoin Witnesses Third Largest Outflow of 2023
Bitcoin experienced a volatile day yesterday, with its price range fluctuating between $26,500 and $28,600. This comes in the midst of the Federal Reserve’s announcement of a 25 basis points increase and a conference with Powell that sent risk assets lower for the day.
However, new data from Glassnode suggests that the drop in Bitcoin’s price was primarily driven by liquidations. Despite spot Bitcoin being bought from exchanges, roughly $360 million was the highest amount in USD this year. The third most amount of Bitcoin in 2023 was driven by outflows of whales greater than $1 million.
This latest dip in Bitcoin’s price highlights the ongoing volatility and unpredictability of the cryptocurrency market. While many investors see it as an opportunity to buy Bitcoin at a lower price, others may be deterred by the sudden fluctuations.
It’s worth noting that Bitcoin has experienced a significant rise in price over the past year, with many analysts attributing this to a variety of factors such as institutional adoption, increased mainstream awareness, and the overall performance of the cryptocurrency market.
Despite its volatility, Bitcoin remains a popular investment option for many individuals and companies looking to diversify their portfolios. As the cryptocurrency market continues to evolve and mature, it’s likely that we’ll see both highs and lows in the price of Bitcoin and other cryptocurrencies. Investors should always proceed with caution and do their research before making any investment decisions.
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