TL;DR Breakdown
- Crypto whales move over 17,000 Bitcoin for a stipend.
- Grayscale CEO says corrections are a normal occurrence in the Bitcoin ecosystem.
A crypto whale has noticed the movement of over 17,000 BTCs between two anonymous wallets. The transaction only attracted a stipend as its charges.
This transaction equates to over $570 million and its transaction fee was just $9.72. It is important to note that a conventional bank would attract a higher transaction fee and the said transaction would take a longer period to deliver.
While Bitcoin price has been on decline recently, the asset reached an all-time high of $42,000 on January 8. The coin is currently trading for $33,502.
Bitcoin has liquidity crisis
In a report by Glassnode, it identified that Bitcoin has seen a rising liquidity crisis. According to the report, there has been an increased transfer of large amounts of BTC from exchanges to cold wallets.
The analytic company identified that over 270,000 BTCs have been transferred in the last 30 days. The report also claimed that the transactions are moving from weak hands to long-term hodlers.
Bitcoin price slumps again
For the first time since January 11, the price of Bitcoin slipped below the $32k mark. The decline wiped off more than $100 billion from the entire crypto market.
While the current run does not match the earlier run of the asset, the cause of the dip in its price is yet to be ascertained. However, some analysts have said the drop could be linked to the coin undergoing a natural correction.
According to CEO of Grayscale, Michael Sonnenshein, he said corrections are quite normal in the crypto ecosystem and they are a natural occurrence for any market.
The CEO also said that the coin witnessed 6 corrections between 2016 and 2017. These corrections occurred before the coin experienced new highs.
Ethereum price has also declined within this period by close to 10%.
