Blockchain analyst Zach XBT has drawn attention to a significant market movement involving Avalanche (AVAX). He noted a sharp 10% decline in the value of AVAX following a substantial sell-off.

According to Zach XBT, an unknown entity transferred approximately 1.96 million AVAX, valued at around $54.2 million, to major cryptocurrency exchanges including Coinbase, Binance, and Gate via THORChain. This massive transfer appears to have triggered a sudden drop in AVAX’s market price.

Subsequent analysis by Zach XBT suggests that the same user likely converted the proceeds from the AVAX sell-off into Bitcoin (BTC). This strategic move highlights the potential market impact of large-scale transactions and the interconnected nature of cryptocurrency markets.

Such activities underscore the importance of blockchain analytics in tracking and understanding market dynamics, as significant movements by large holders can have immediate and substantial effects on cryptocurrency prices