Bitcoin’s value plummeted to $57,000, driven by significant selloffs from U.S. investors, according to market analysts on Monday. The cryptocurrency’s downward trend is attributed to the offloading by so-called “whale investors,” who are large holders of Bitcoin. Market observers predict further declines in the coming months, influenced by factors such as the U.S. tech sector’s performance, the Federal Reserve’s monetary policy, and the upcoming U.S. presidential debates.
As of 9 a.m. on Monday, Bitcoin traded at 78.33 million won on Bithumb, a major South Korean cryptocurrency exchange, reflecting a 0.72 percent drop from the previous day. Ethereum, another major cryptocurrency, also experienced a decline, falling to around 3.3 million won on Bithumb and Upbit, another South Korean exchange, marking a 3 percent decrease.
The “kimchi premium,” a term used to describe the price difference between South Korean and offshore cryptocurrency exchanges, remained in the 2 percent range. This is a recovery from near-zero levels at the end of July, though still significantly lower than the over 10 percent premium seen in mid-March when Bitcoin’s value exceeded 12.4 million won.
A report by CryptoQuant highlighted that deposits to spot exchanges increased just before Bitcoin’s price drop, with some of these deposits attributed to whale investors holding between 1,000 to 10,000 Bitcoins. Ali Martinez, a well-known cryptocurrency market analyst, indicated last week that the downward pressure on prices could continue. He warned that the collective selling by whale investors might trigger similar declines in other major cryptocurrencies.
Martinez pointed out that the $55,450 price level is crucial when considering the behavior of users on Binance, a leading cryptocurrency exchange. He emphasized that unless there is a significant increase in buying demand from a broad base of investors, the selling pressure could intensify, potentially leading to further losses in the cryptocurrency market.