Byte Tree experts suggested that a sharp drop in the first cryptocurrency could occur due to the mysterious transaction of $1.2 billion. These funds were transferred from the wallet to the cryptocurrency exchange. This operation caused massive sales, which became the reason for the exacerbation of volatility and lower asset prices.
Recall that Bitcoin began to rapidly lose in price on Tuesday, September 24. It was close to falling below the $8000. However, the coin was able to stay above this level, and at the moment its price is $8400.
Large transfers in the cryptocurrency have always intensified volatility. Moreover, very often such operations are carried out with the aim of further selling a cryptocurrency, which leads to the asset value decrease.
Many analysts believe that the $1.2 billion transaction in Bitcoins caused some panic in the market and became a turning point, completing the stage of Bitcoin’s weak volatility.