The encrypted currency market suddenly turned to Bear City on Sunday night and was destroyed by a heavy sale on a calm weekend. According to the chain data first revealed by the founder of Timechain Index, Sani, this decline was associated with a long-slept Bitcoin whale associated with a large withdrawal from the HTX exchange in 2019 and sold about 24,000 bitcoins worth approximately $2.7 billion in recent days.
The entity has not moved its Bitcoin for five years, and after being sold, it began to buy large quantities of Ethera, which accumulated over 400,000 units for leveraging multiple silos and pledges. Despite the fact that the Ether factory once touched the $5,000 mark, it was refused immediately.
Implications of the United States Federal Reserve Chairman ' s Dove speech
Last week, US Federal Reserve Chairman Jerome Powell’s Dove speech at Jackson Hole initially ignited the enthusiasm of the encrypted currency market, which led to an increase of nearly 10% in fare prices and more than 5% in XRP in hours. By the end of the week, however, traders began to question whether there would be a real drop in September. “The speech contained enough dove insinuations to trigger an immediate rebound”, Peter Chung and Rick Maeda, researchers from Presto Research, wrote, “but a careful analysis will reveal that it is uncommitted to an immediate reduction in interest rates.”
The CME Fedwatch tool shows that interest rate reduction is close to 87 per cent. On the encrypted currency betting platform Polymarket, the bettter felt that the interest rate could be reduced by approximately 81 per cent, up from 57 per cent before Powell spoke.
By Monday morning, the total market value of the encrypted currency market had shrunk by over $80 billion, falling below $4 trillion, while more than $715 million in leverage positions had been liquidated.