After picking up earlier in the week, Bitcoin is once again struggling. The leading tokens have once again dropped to the $37,000 mark after hitting $40,000 earlier this week (the highest in June). The dip in the Bitcoin prices is attributed to whales selling and diversifying their crypto portfolio.
Based on the on-chain data, analysts are confirming that there are big movements from certain addresses and under the huge sell pressure the Bitcoin prices have sunk on Friday. The other major tokens have copied the trend, with Ethereum down to the $2400 mark again and BNB just below $350.
Earlier in the week, the prices picked up with a host of favourable news that did help boost investor confidence. First, El Salvador decided to legalize Bitcoin, followed by Elon Musk’s tweet in which he said Tesla would still be accepting Bitcoins if mining shifted to cleaner energy sources. The tweet coupled with El Salvador’s historic decision pushed Bitcoin’s price to $41,000. It was the highest the leading token had seen in June.
According to Cryptoquant, a data aggregator firm focussing on cryptocurrency markets has said that the drop in prices is due to the big whales selling their holdings. The overall market cap on Bitcoins struggles to remain above $700 billion. Earlier in the year, at one point the Bitcoin’s market cap was above $1 Trillion.