Today the crypto market has slumped; Bitcoin leads the way. CoinGecko’s statistics show that Bitcoin’s (BTC) price has dipped below $56,000.
BTC trades at $55,593.88 at press time. Over the previous week, this shows a 1.61% reduction; the last day’s percentage is 2.52%. Macroeconomic changes and crypto movements are among the several elements behind the general fall in the market.
Large Ethereum Deposits to Binance
Per Lookonchain, Metalpha has made Ethereum (ETH) deposits to Binance in the past five days. A total of 55,588 ETH, valued at $128.7 million, has been transferred, with the most recent deposit of 21,999.5 ETH ($51.16 million) occurring just one hour ago at the time of the report.
Metalpha deposited 21,999.5 $ETH($51.16M) to #Binance again 1 hour ago.#Metalpha has deposited a total of 55,588 $ETH($128.7M) to #Binance in the past 5 days and currently holds 30.5K $ETH($70.3M).https://t.co/Ubxf8zwbmS pic.twitter.com/I65caBzU4L
— Lookonchain (@lookonchain) September 11, 2024
These large transactions often raise concerns among market participants, as such movements can signal a potential increase in sell pressure. Currently, Metalpha holds 30,500 ETH ($70.3 million) in its reserves, which has added to the market’s volatility.
These large-scale ETH transactions come at a time when the crypto market is already facing heightened uncertainty. This further contributes to the overall decline in both Bitcoin and Ethereum prices. The continued movement of ETH could potentially lead to more market corrections if these funds are liquidated.
Impact of CPI Data and Broader Economic Factors
Economist and crypto expert Michaël van de Poppe said that markets hardly responded to the humdrum Consumer Price Index (CPI) data release.
CPI is a big nothing burger.Coming in as expected, markets are barely moving based on the news. Generally, CPI has dropped to 2.5%, which is significantly lower than the 3.0% from previous month. Inflation is cooling down.
— Michaël van de Poppe (@CryptoMichNL) September 11, 2024
The CPI dropped from 3.0% the month before to 2.5% reflecting lowering inflation. Notwithstanding this, since the publication of U.S. employment data markets—including both traditional and cryptocurrency stocks—have been in correcting mode.
In addition, major tech stocks like Nvidia, Microsoft, Google, and Meta have also seen declines, contributing to the overall risk-off sentiment in the market according to Wise Advise. Nvidia, in particular, saw its largest daily drop since April 2024, following an antitrust subpoena from the U.S. Department of Justice.
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Read also: Why Is Internet Computer (ICP) Price Pumping?
September’s Historical Trends for Bitcoin
September has historically been a challenging month for Bitcoin and the broader crypto market. Wise Advice pointed out that Bitcoin often faces difficulties during this period, raising questions about whether it can overcome its historical September struggles.
This recent correction in Bitcoin prices aligns with these historical trends, as investors remain cautious, anticipating further volatility throughout the month. Combined with economic factors and large-scale ETH transactions, this has created an atmosphere of uncertainty across the crypto space.
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