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- Bitcoin faced a significant leverage reduction, marking its most substantial daily drawdown since mid-August.
- Whales transferring significant amounts of Bitcoin to exchanges, with Binance and Coinbase receiving substantial inflows, raise concerns about potential selling pressure.
After trying a bounceback on Tuesday, December 12, the world’s largest cryptocurrency Bitcoin (BTC) once again faces some selling pressure. At press time, the BTC price is down 1.61% at $41,163 with a market cap of $805 billion.
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Bitcoin’s (BTC) price found stability around $41,000 on Tuesday, anticipating the final U.S. interest rate decision of the year scheduled for Wednesday. Crypto traders were assimilating the recent significant leverage reduction, marking the most substantial daily drawdown since mid-August.
The primary cryptocurrency rebounded to $42,000 earlier in the day from a low of $40,200 but experienced a slight dip to $40,600 during U.S. afternoon hours. Eventually, after mitigating some losses, BTC was trading at $41,300, registering a modest 0.3% increase over the past 24 hours
The U.S. Federal Reserve is anticipated to maintain the Fed fund rates in the range of 5.25%-5.5%, concluding the Federal Open Market Committee (FOMC) meeting on Wednesday. This decision aligns with the backdrop of Consumer Price Index (CPI) inflation showing a gradual decline in November
Caleb Franzen, founder of Cubic Analytics said:
Disinflation is in full force and the latest round of CPI data for November 2023 is further proof that the trend is intact.
Whales Moving Bitcoin to Exchanges
The selling pressure in Bitcoin can continue further amid the strong movement of Bitcoin holdings by whales, to exchanges.
Data from blockchain data tracker Whale Alerts show a series of significant transfers from wallet addresses to crypto exchanges Binance and Coinbase. While Binance saw a whale inflow of around $52 million, Coinbase reportedly received over $307 million from the transfers.
In the most recent, Whale Alert reported a 781 BTC (worth $32 million at current prices) transfer from four crypto wallets, 658 of which were sent to Binance. Furthermore, in the early hours of Wednesday, another wallet also transferred 500 BTC to Binance, worth around $20.5 million at current market prices.
Meanwhile, an unknown wallet transferred 2,511 BTC to crypto exchange Coinbase, with a current market value of about $103 million. Six hours earlier, another anonymous wallet moved 2,510 BTC, worth around $102 million, to the crypto exchange. Late on Tuesday, another unknown wallet transferred 2,494 worth around $102 million to Coinbase. The bitcoins have since been transferred from the exchange to separate wallets, as reported by Whale Alert.
On the other hand, BlackRock has modified its application for the launch of a spot Bitcoin ETF in the U.S., introducing structural changes. The updated filing specifies that Wall Street banks can now generate new shares in the fund using fiat currencies, expanding beyond cryptocurrencies. These banks must secure the authorized participant (AP) status to participate.
