Bitcoin doubled in value over the past year and reached record highs near $124,457, then slipped to about $108,000 in late August. Large holders moved substantial positions—one sold 24,000 Bitcoin worth $2.7 billion in a single day while another shifted funds into Ethereum—creating downward pressure on Bitcoin and upward pressure on Ethereum. Broader macroeconomic factors also affect demand: high interest rates damp risk appetite, while potential Federal Reserve rate cuts could encourage flows into riskier assets. Federal Reserve Chair Jerome Powell noted slowing growth and remained cautious about tariff risks while signaling possible rate cuts. Longer-term price charts provide perspective on short-term slumps.
Cryptocurrency traders have observed activity this week from a Bitcoin "whale" - someone holding a huge position in a given coin - that on its own might be enough to move markets. When a whale moves their assets around, the size of the trade can send a coin up or down and spook onlookers, who might be inclined to follow suit.
Earlier this week, one whale sold 24,000 Bitcoin worth $2.7 billion in a single day. Another trader with a massive position in Bitcoin was just spotted buying up Ethereum, the cryptocurrency with the second highest market capitalization. When large positions flow out from Bitcoin and into Ethereum, it can send the former down and the latter up - particularly if the broader crypto market chases the big movers.
Beyond big trades and whale moves, cryptocurrency is affected by broader macroeconomic factors just like everything else. President Trump's reelection sent Bitcoin on a tear late last year, but high interest rates still temper interest in digital coins. If the Fed lowers interest rates and borrowing cash gets cheaper, money is likely to flow into riskier investments like Bitcoin. In a highly anticipated speech late last week, Federal Reserve Chair Jerome Powell signaled that rate cuts could be on the way next month.
Collection
[
|
...
]