Sudden $800 price drop in the bitcoin market on Thursday was caused by several large amount on-chain transactions, exhaustion of bullish trend on the charts, as well as stock market sell-off. This three likely factors have led to the biggest single-day decline of Bitcoin market value in previous two weeks.
- On June 12, cybercriminals transferred over $4.1 million in BTC stolen from Bitfinex exchange to unknown wallets. As these transfers were noted by the crypto market community, some investors then began speculating about a price dump.
- Another one transaction worth $1.3 billion carried out by an unknown BTC wallet on June 11 also increased the bearish trend on the market. Concerns about possible dumping of large numbers of coins by so-called “whales” may have caused some bulls to exit the market. Further, traders may have taken short positions in anticipation of the big dump.
- On Thursday, the Dow Jones Industrial Average (DJIA) fell by 6.9% (1,800 points), that was the strongest decline in the last three months. The sell-off in U.S. equities was too big to ignore for the crypto traders — some of whom likely offered bitcoin on the fear that financial markets could be about to witness another round of panic like that seen in March.