This Might Be the Reason Why Bitcoin Dropped 7%

The biggest cryptocurrency, Bitcoin (BTC) price recorded a major drop on Friday morning after hitting back to back record breaking rally. BTC price dropped from the highs of $73,000 price to the lows of $66,000 within a few hours. However, this decline coincided with the huge whale movements in the market.

Bitcoin price dropped due to Binance movement?

According to the data shared by Lookonchain, a Binance deposit wallet transferred 4,637 Bitcoin (approx worth $329 million) to Binance’s hot wallet in the last 24 hours. Another similar movement got caught by the tracker which raised suspicion among the traders.

The other transaction was the deposit wallet moving 5,876 BTC (approx worth $319 million) to Binance hot wallet during the BTC price drop recorded on March 5. The sudden movement of such huge amounts of BTC to Binance has raised questions about its potential impact on market sentiment.

Bitcoin price dropped by more than 7% in the last 24 hours leading to semi market collapse. Meanwhile, this price decline came in after BTC surge of around 50% in the last 30 days. So, it came to be seen as a market correction but still, it is undecided whether the crypto market lose more before the next surge.

As per reports, analysts are suggesting that Bitcoin’s recorded pullback is natural as it came after many high speed rallies.

Can this change market sentiments?

The original crypto, Bitcoin is trading at an average price of $67,876, at the press time. It dropped by 7% from its all time high of $73,750 recorded on March 14. However, its 24 hour trading volume is up by 65% to stand at $76.7 billion. It is holding a market cap of $1.33 trillion.

Data provided by the Coinglass shows that, in the past 24 hours, more than approx $526 million worth of bullish crypto bets got liquidated. It marked the highest figure registered in about two weeks. The total liquidations comes in at $687.80 million. Around 195k traders got liquidated at the same time, while, the largest single liquidation order happened on the crypto exchange.